GST registration for small businesses to begin in 3 days:Benefit for those with monthly tax less than ₹2.5 lakh; total collection in Oct ₹1.96 lakh crore

Starting November 1, small and low-risk businesses can obtain GST registration within just three business days. The central government has introduced a new fast-track GST registration scheme aimed at benefiting small and medium traders whose monthly GST liability is below ₹2.5 lakh. Meanwhile, the government has released GST collection data for October, showing total collections of ₹1.96 lakh crore — a 4.6% increase year-on-year. In October 2024, GST collections stood at ₹1.87 lakh crore. October’s collection also marked a ₹3,000 crore rise compared to September’s ₹1.89 lakh crore, which had itself reflected a 9.1% annual increase. Earlier this year, GST collections hit a record high of ₹2.37 lakh crore in April, followed by ₹2.01 lakh crore in May. 96% new applicants will benefit Finance Minister Nirmala Sitharaman said during the inauguration of CGST building in Ghaziabad that this new scheme will benefit about 96% of new applicants. She said that the department’s goal is to ensure there are no delays or obstacles in this process. Understand new GST registration in 3 questions… What is the new process and who will benefit? Answer: This scheme was approved in the GST Council meeting held in September. Small or low-risk businesses that are identified by the GST system based on its data analysis, or those that self-declare their monthly output tax liability. This includes CGST, SGST/UTGST and IGST, and does not exceed Rs 2.5 lakh, will be able to take advantage of the Simplified GST Registration Scheme. The applicant will only need to provide a self-declaration, or the GST system will automatically place them in the low-risk category. Currently, more than 1.54 crore businesses are registered under GST. This new route will quickly cover new applicants. It will be easier for small shopkeepers and startups. Why did this change come? Answer: Small businesses were facing difficulties due to delays in the registration process. Now, PAN-based registration can be done in 3 days. The GST Council approved this to support small businesses. How to Apply? Answer: The process has started from today. Applicants should go to the GST portal and choose the low-risk route. Provide self-declaration. Visit the help desk for guidance. Option to Exit Anytime
This is a voluntary scheme, meaning businesses can adopt it by choice and can exit when needed. Currently, more than 1.54 crore businesses are registered under GST in the country. New GST rates were implemented from September 22 Since September 22, GST has been applied in only two slabs of 5% and 18% on essential goods. The government has done this to simplify the tax system. This has made everyday items like UHT milk, cheese, ghee and soap-shampoo, along with AC, cars, cheaper. This decision was taken in the 56th meeting of the GST Council. Finance Minister Nirmala Sitharaman had shared this information on September 3. GST Collection Shows Economy’s Health GST collection is an important indicator of economic health. Higher collections indicate strong consumer spending, industrial activity and effective tax compliance. In April, businesses often clear year-end transactions from March, leading to increased tax filings and collections. KPMG’s National Head Abhishek Jain said that the highest GST collection so far reflects a strong domestic economy. GST was implemented in 2017 The government implemented GST across the country on July 1, 2017. After this, 17 taxes and 13 cesses of central and state governments were removed. On completion of 7 years of GST, the Finance Ministry posted about the achievements made during the last seven years. GST is an indirect tax. It was implemented in 2017 to replace various types of indirect taxes like VAT, service tax, purchase tax, and excise duty. GST has four slabs of 5, 12, 18 and 28%. GST is divided into four parts: