New Delhi: Simplified Goods and Services Tax (GST) registration for small e-commerce sellers, faster refunds and streamlined documentation are among a series of process reforms likely to take effect from November 1, as the government moves to reduce compliance burdens for businesses.
The changes were approved at the 57th GST Council meeting on October 8 and will be rolled out in phases, an official said on Thursday. Reforms that can be implemented through administrative measures are expected to come into force from November 1, 2026, while those requiring amendments to GST law are slated for April 1, 2027.
Notifications and circulars covering the process changes have been approved by the legal department and are likely to be issued on Friday, the official said.
The reforms cover registration, returns, refunds and adjudication, with measures aimed at reducing paperwork, speeding up tax administration and easing access to the national market for small sellers.
Easier registration for small e-commerce sellers
Small suppliers selling goods through e-commerce operators across multiple states and Union territories could find it easier to expand their reach under the proposed changes.
Sellers without a physical presence in every state or Union territory where their goods are stored would be allowed to declare an e-commerce operator’s warehouse in that location as their Principal Place of Business, subject to specified conditions. These include passing on input tax credit of up to Rs 2.5 lakh a month.
Sellers would need to establish a genuine presence in one state, where physical verification and Aadhaar authentication would be completed. Registrations in other states could then be obtained with the consent of the e-commerce platform, without further involvement of a tax officer.
The measure could benefit around 9.5 lakh small sellers by allowing them to access the national market without setting up physical offices in every state where their goods are stored. It is also intended to create greater tax parity across competing e-commerce business models.
Unified documents to streamline GST registration
The government will issue a comprehensive circular specifying the documents and information required for GST registration. The GST REG-01 application form will include drop-down options for prescribed documents and information, giving applicants and tax officers greater clarity on submission requirements.
The GST portal is also set to offer a more user-friendly application process, with clearer navigation, drop-down lists and tooltips.
The changes are intended to reduce application rejections and follow-up queries arising from missing or incorrect information, while speeding up the processing of registrations.
Faster refunds with less officer intervention
The proposed reforms also seek to accelerate refunds by automating parts of the process.
Refunds of excess balances in the electronic cash ledger will be sanctioned automatically by the system, without intervention by a tax officer. The time allowed for issuing an acknowledgement or deficiency memo will also be cut to 10 days from 15 days.
For refund claims related to zero-rated supplies and the inverted duty structure, 90% of the amount claimed will be sanctioned provisionally through an automated system, without officer intervention, based on risk identification and evaluation by the system.
The measures are aimed at improving the speed of refunds and easing working-capital pressures on businesses.
Rs 10,000 threshold for GST notices
To reduce compliance burdens and litigation, the government plans to introduce a minimum threshold of Rs 10,000 for issuing show-cause notices.
The measure is among the dispute-resolution reforms approved by the GST Council. Its implementation timeline will depend on the changes required to give effect to the relevant decisions.