NEW DELHI: Starting November 1, businesses will see several changes in Goods and Services Tax (GST) procedures, with simpler registration, faster refunds and more flexible rules for discounts offered after a sale.The changes, approved at the 57th GST Council meeting on October 8, are aimed at making GST compliance easier, particularly for small businesses and sellers operating through e-commerce platforms.The reforms mainly cover GST registration, returns and refunds, along with the tax treatment of post-supply discounts. The Council’s decisions requiring administrative changes will be implemented in phases beginning Sunday, November 1, 2026.
Easier GST registration for small online sellers
Small businesses selling products through e-commerce platforms across multiple states and Union Territories will no longer need to maintain a physical office in every state where their goods are stored.Under the new rules, eligible sellers passing on input tax credit of up to Rs 2.5 lakh per month can use an e-commerce operator’s warehouse as their principal place of business (PPoB) for GST registration in states where they do not have a physical presence.However, sellers must have a genuine physical presence in at least one state, where Aadhaar authentication and physical verification will be carried out. For other states, they can obtain GST registration with the consent of the e-commerce platform, without further involvement of a tax officer.The change is expected to benefit around 9.5 lakh small sellers, helping them expand their reach across India without the additional cost of setting up offices in multiple states. It is also expected to create greater tax parity between competing e-commerce business models.
GST registration to become simpler
Businesses applying for GST registration can also expect a smoother process from November 1.The GST department has standardised the documents and information required for registration, making it easier for applicants to understand what they need to submit.The GST portal will also offer a more user-friendly interface, with clearer navigation, drop-down lists and tooltips to guide applicants through the process.These changes are expected to reduce errors, unnecessary queries and application rejections caused by missing or incorrect information, while speeding up registration approvals.
Faster GST refunds with automated approvals
Businesses waiting for GST refunds could receive their money faster under the new system, which reduces the need for manual intervention by tax officers.Refund claims for the full excess balance available in a taxpayer’s electronic cash ledger will be sanctioned automatically by the system, without requiring approval from a tax officer.Similarly, for refund claims related to zero-rated supplies and an inverted duty structure, 90% of the claimed amount will be provisionally sanctioned through an automated process.These provisional refunds will be based on the system’s identification and assessment of risks, without direct intervention from tax officers.The government is also easing GST rules for post-supply discounts, addressing a longstanding concern among businesses.Under the revised framework, businesses will have greater flexibility to offer discounts after a sale without having to meet the earlier requirements of a pre-existing agreement or linking the discount to specific invoices.However, safeguards related to credit notes and the corresponding reversal of input tax credit will remain in place.The change is expected to benefit businesses that regularly offer volume-based incentives, trade schemes and year-end rebates.
