The 57th meeting of the GST Council concluded on Thursday, October 8, with major decisions taken to simplify GST returns and filming process, ease in compliances like the removal of arrest powers from officials and a reduction in penalty charges. Small businesses have major reasons to cheer; the changes will surely bring ease in ease of doing business, as the government has significantly simplified the GST registration process and introduced four major reforms.
The Ministry of Finance and the CBIC (Central Board of Indirect Taxes and Customs) have jointly announced GST registration reforms under the title 'Next-Gen GST Process Reforms'. This new change ensures that businesses will no longer have to run around offices or rely on agents to obtain or update GST numbers.
GST Council Meeting: 4 Big Changes For Small Businesses
1. Registration will now be seamless
Currently, the registration process is a bit complex and confusing, as a lot of papers and documents are required, and even the slightest mistake would result in application rejection. However, the GST registration process got a revamp as applicants will now receive system-based guidance on the portal. Meaning, when somebody fills out the online form, the computer/portal will automatically guide you step by step. This will minimise the chance of mistakes.
2. Special Discounts for E-Commerce Traders
In a big relief for online goods sellers, the council approved a simplified GST registration mechanism for small sellers. Now, small businesses will be able to sell by establishing a place of business in each state.
3. Cancelling Registration Made Easy
In case of closure of a business for some reason, GST registration needs to be cancelled. Previously, this required months of waiting and running around officials after submitting an application. But now, there's no need to make the rounds; it will be automatically accepted.
4. Self-Correction Facility
Previously, minor errors in a GST certificate, such as corrections to an address or name, would require a long wait for approval. But now, taxpayers will be able to make changes to their registration details themselves.
GST Council Meeting 2026
The 57th GST Council's general meeting, which began at 11 AM on Thursday, October 8, at Bharat Mandapam in New Delhi, has concluded, and the Finance Minister has announced the key decisions taken by the council. The announcements include relief in tax refunds, a curb on arrests and reduced penalty amounts.
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GST Council 2026: Key Announcements
The council approved automatic acceptance of routine changes in registration.
Additionally, faster clearance of refunds, with the acknowledgement period reduced to 10 days from 15 days.
The minister said that 90% of refunds will be issued within 3 working days.
The council removed the power of arrest under the Goods and Services Tax regime. It has also raised the threshold for prosecution to Rs 5.
The general penalty has been reduced and will be applicable where no specific penalty is prescribed, from Rs 25,000 to Rs 10,000.