GST registration in 3 days for 95% applicants; refunds to be automated for faster processing

Businesses will soon be able to secure Goods and Services Tax (GST) registration in just three calendar days, with 95 percent of applications expected to be cleared within this timeframe, sources in the Finance Ministry told Business Today on August 17.  

The move would mark a major step in improving taxpayer convenience and streamlining compliance under the GST regime.

Alongside faster registration, the sources added, refunds related to Input Tax Credit (ITC) and inverted duty structures will be largely automated, significantly reducing manual intervention and cutting the time taken for disbursal.  

Both measures are part of a broader restructuring of the indirect tax system, aimed at enhancing transparency, predictability, and taxpayer confidence, according to Finance Ministry officials.

On August 15, Prime Minister Narendra Modi proposed significant reforms in GST, focusing on three pillars: structural reforms, rate rationalization, and ease of living.

According to officials, the changes are intended to address long-standing concerns of businesses, particularly micro, small and medium enterprises (MSMEs), which often face working capital constraints due to refund delays.  

“Automating refunds and ensuring near-instant registration will help enterprises save time, improve cash flows, and reduce compliance costs,” a senior Finance Ministry official said.

The reforms are part of a broader agenda aimed at rationalising GST rates, addressing classification disputes, and resolving challenges arising from inverted duty structures. However, officials underlined that the focus goes beyond technical corrections. The thrust, they said, is on making the GST regime more citizen-friendly and enhancing the overall ease of living.

For entrepreneurs and startups, faster registration is expected to remove one of the biggest hurdles in commencing business. For small taxpayers, the automation of refunds will ease liquidity pressure and minimise the need for repeated follow-ups with tax officials. Officials said such measures directly support the government’s focus on “minimum government, maximum governance.”

The government highlighted that ordinary citizens would also gain indirectly from more efficient tax administration. According to officials, a simplified, technology-driven GST framework not only lowers business costs but also delivers quicker and more equitable services to consumers.

“These reforms are designed to reduce friction in everyday compliance, whether it is a small trader seeking registration, a manufacturer awaiting refund, or a consumer relying on a fair and transparent system,” the official added.

By embedding technology and automation at the heart of tax administration, the government expects to deliver a system that is faster, less intrusive, and more predictable — ultimately strengthening trust between taxpayers and the state.