3-day registration for GST, 90% provisional refunds from Nov 1

The Goods and Services Tax (GST) Council has cleared the way for two major compliance relief measures—a simplified registration scheme for small and low-risk businesses, and a risk-based framework for faster refunds.

- MONIKA YADAV

From November 1 this year, eligible applicants will get GST registration within three working days through an automated process while exporters and firms facing inverted duty structure will be able to access 90 per cent of their refund claims provisionally.

Explaining the intent in an interaction with Business Standard, Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal said the scheme will cover both central and state jurisdictions, and apply in cases where applicants are assessed to be low-risk. "Certain cases like public sector undertakings (PSUs) and government departments, which already have a strong tax footprint, will be granted automatic GST registration. Another category is businesses that primarily make Business-to-Consumer (B2C) supplies—such as retailers, beauty parlours, and fitness centres," said Agarwal. In other cases, he added, those whose GST liability on Business-to-Business (B2B) supplies does not exceed 2.5 lakh a month, they can opt for simplified registration. "If in future they cross this threshold, they can transition to normal registration after due checks," he said.