Starting 1st November 2025, businesses applying for GST registration in India will experience a faster, more transparent, and technology-driven process. The GST Council, in its 56th GST Council Meeting held on 3rd September 2025, approved the launch of an automated registration system designed to streamline onboarding and reduce manual delays. This update marks an important step in improving ease of doing business and strengthening trust in the GST system.

1. Faster GST Registration for Low-Risk Applicants

Starting 1 November 2025, qualifying low-risk businesses can receive GST registration through an automated approval route, eliminating most manual checks and significantly speeding up onboarding.

Key Highlights

• Who qualifies: Businesses declaring an estimated monthly output tax liability of ₹2,50,000 or less.
• Digital evaluation: The system uses automated risk-based checks and identity verification (including PAN–Aadhaar match) to validate applications.
• Approval timeline: If all validations are cleared, registration will be issued within three working days of the application.
• Opt-in mechanism: Applicants may join or exit the scheme as required.

Why this matters

The initiative enables faster registration for genuine taxpayers, supports smoother business launch timelines, and reduces compliance friction with AI-assisted verification.

Restrictions, Requirements & Exit Rules

Scheme Restrictions

• A taxpayer can obtain only one GST registration per State/UT under this scheme using the same PAN. Multiple registrations in the same State/UT under Rule 14A are not allowed.

Mandatory Requirements

• When filing GST REG-01, applicants must choose “Yes” for the option to register under Rule 14A.
• Aadhaar authentication is compulsory for:
  • The Primary Authorized Signatory, and
  • At least one Promoter/Partner.
• Approval will be granted electronically within three working days from ARN generation, provided Aadhaar authentication succeeds.

Exit / Withdrawal Conditions

To withdraw from Rule 14A registration, the applicant must:

• File all pending returns from the date of GST registration up to the withdrawal request date.
• Meet the filing tenure requirement:
  • At least three months of returns if withdrawing before 1 April 2026, or
  • At least one tax period if withdrawing on or after 1 April 2026.
• Ensure no registration amendment or cancellation request under Rule 14A is pending.
• Have no ongoing or initiated cancellation proceedings under Section 29 for the Rule 14A registration.

Also Read: Major GST Changes from October 1, 2025 – GST 2.0

2. Simplified Registration for E-Commerce Operators (ECO Scheme)

Introduction

The new scheme allows e-commerce sellers to operate across India with a single PAN-based GST registration instead of multiple state registrations. This aims to ease compliance and support digital commerce growth.

Key Highlights

• One PAN-based GST registration for all-India e-commerce operations
• No need for multiple state-level GST registrations
• Simplified onboarding and compliance for online sellers
• CBIC circular expected by mid-November 2025 with detailed rules

Why This Matters

This change reduces compliance burden and costs for e-commerce sellers, especially MSMEs and startups. It enables easier expansion across states and encourages broader participation in the digital marketplace.

Who Qualifies? Key Eligibility Criteria

The simplified mechanism is targeted, not universal. Only applicants meeting certain criteria will benefit:

• Low-risk businesses: Applicants whose projected output tax liability (i.e., CGST + SGST/UTGST + IGST) on supplies to registered persons is under ₹2.5 lakh per month. This threshold is the gateway to opting into the simplified process.
• E-commerce small suppliers: For businesses supplying through electronic commerce platforms (ECOs) across states, the new “ECO Scheme” allows a single PAN-based registration without the need for a physical place of business in every state.
• Exclusions: Applicants with a history of high risk (e.g., non-compliance, past violations) or those whose supply/output exceeds the threshold must follow the standard registration process. Existing taxpayers can migrate into the scheme only after approval.
  If you fall within the low-risk bracket or operate via an ECO platform, the new regime offers tangible relief.

Time Limits and Penalties

Timely application is crucial under the new system. Taxpayers must apply for registration within 30 days of becoming liable. Failure to do so can lead to a penalty of 10 percent of the tax amount or ₹10,000, whichever is higher. In addition, underreporting tax liability can attract a 100 percent penalty with interest.
The automated GST registration from 1st November 2025 is a significant reform that aligns with India’s broader goal of simplifying tax compliance through technology. By cutting processing times, reducing paperwork, and introducing risk-based verification, the new process enhances the overall taxpayer experience.
For small and compliant businesses, this change represents both convenience and confidence, a step toward making GST truly automated, transparent, and business-friendly.
Also Read: List of Documents Required for GST Registration

Do you know about IRIS GST software solution

It’s a GST Software trusted by top Indian companies! A cloud-based GST software that helps you to automate your GST Return filing, optimise Reconciliation results and increase ITC claim without any hassle. It’s a powerful GST Return filing that supports multiple GST Return filing, PAN level data view, bulk operations, advanced 2A-Purchase Register reconciliation tool, vendor management and gets you 100 % ITC Claims.

How does IRIS GST Software help with GSTR 9?

• One-click download of GSTR 1, 2A, 2B and 3B data
• Reports on Tables 6, 10, 11, 13, 17 and 18 helps in auto-population
• In-built audit trail at an invoice level for each entry (Invoice-wise, month-wise and section-wise bifurcation of all values)
• One-click GSTR-9 data upload for all GSTINs
• Need not wait for year-end, you can get all reports at the end of any month
• A checklist of periods for which you have fetched data from GSTN. This is available return-wise for GSTR 1, 2A and 3B
• Comparison between IRIS auto-calculated data and GSTN auto-calculated data
• Quick reports on differences between table 8 of GSTR 9 vs GSTR 2a vs GSTR 2B vs Purchase Register

IRIS GST Software’s GST Reconciliation module has been built considering the requirements of various industries such as manufacturing, pharmaceuticals, automobiles etc., and has market-tested logic to reconcile the buyer-supplier data across various parameters to reduce manual intervention.