Major GST reforms are underway, focusing on faster registration, automated ITC refunds, and simplified compliance. The changes align with PM Modi’s three-pillar vision.
Vanshika verma | Aug 23, 2025 |
Finmin Allows Businesses to Secure GST Registration Within Three Calendar Days, GST Reforms Underway
Finance Minister, Nirmala Sitharaman said, the government is soon to permit businesses to secure GST registration within just three calendar days, with 95% of applications expected to be cleared in this timeframe.
The main motive of this initiative is to improve taxpayer convenience and reduce bureaucratic delays, marking one of the most important steps in smoothing compliance under GST since its rollout in 2017.
The Finance Ministry is also preparing to automate refunds connected to Input Tax Credit (ITC) and inverted duty structures. This move is expected to reduce manual intervention, cut down refund delays and ease liquidity constraints faced by businesses, especially micro, small and medium enterprises (MSMEs).
The reforms are part of a larger restructuring schedule focused on three major pillars emphasised by Prime Minister Narendra Modi on August 15. Following are the three pillars:
Pillar 1: Structural Reforms
It solves the classification issues to smooth rate structures, simplify compliance processes, and provides greater equity and consistency over sectors.
Pillar 2: Rate Rationalisation
This would increase affordability and boost consumption and make necessary and aspirational goods more accessible to a wider population and has a reduction of slabs as it moves towards a simple tax with 2 slabs i.e. standard and merit.
Pillar 3: Ease of Living
It implements pre-filled returns, which helps in reducing manual intervention and terminating mismatches.
The changes aim to address well-established industry concerns, from refund hold-ups to disputes arising from inverted duty structures and complex classification rules.
For entrepreneurs and startups, faster registration is expected to eliminate one of the biggest problems in starting off its operations and for small taxpayers, automated refunds will ease liquidity pressures and remove repeated follow-ups with tax officials.
The government highlighted that common citizens will also benefit indirectly. By reducing business costs and ensuring fairer, technology-driven tax administration, consumers can expect more efficient and unbiased services.
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