You can soon register non-risky businesses in just 3 days
What's the story
The Goods and Services Tax (GST) Council is likely to have approved a major reform to expedite the registration process for non-risky businesses. According to CNBC-TV18, the new system will reduce the time taken for registration from several days to just three working days. The risk classification of a business will be determined by parameters and data analysis conducted by GST Network (GSTN).
Scheme details
Optional simplified registration scheme for small businesses
The GST Council is likely to have approved an optional simplified registration scheme. This would offer automatic approvals for businesses whose monthly tax liability is less than ₹2.5 lakh. The move is aimed at making the registration process more efficient and user-friendly, especially for small businesses with lower tax liabilities.
Refund process
Export refunds to be issued within 7 days
The GST Council might have approved a plan to issue export refunds within seven days, depending on risk analysis. Refunds that are currently stuck under the inverted duty structure in sectors such as textiles, pharma, chemicals, and fertilizers will also be released provisionally within seven days. The move is likely to ease cash flow issues for businesses in these sectors.
Refund facilitation
Facilitation through ICEGATE for small taxpayers
For small taxpayers with refunds under ₹1,000, the GST Council may have approved facilitation through ICEGATE for faster export refund claims. The move is expected to clear nearly 1.5 lakh pending shipping bills and speed up the refund process for small businesses. This is part of a broader effort by the GST Council to streamline processes and improve efficiency in the tax system.