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A set of Goods and Services Tax (GST) process reforms is likely to take effect from November 1, making registration simpler for small sellers on e-commerce platforms and speeding up refunds, an official said.
The changes follow decisions taken at the 57th GST Council meeting on October 8, which approved reforms covering registration, returns, refunds and adjudication. The official said the notifications and circulars have been cleared by the legal department and are likely to be issued soon.
Easier registration for small online sellers
The most significant change is for small suppliers selling goods through e-commerce platforms. Eligible sellers could declare a platform warehouse as their principal place of business in states where they have no physical presence, subject to conditions to be prescribed. They would not need separate premises in every state where their goods are stored.
The move could help around 9.5 lakh small sellers reach the national market more easily. It is also meant to bring greater tax parity between competing e-commerce business models.
Unified documents for registration
The reforms also introduce unified documentation for GST registration. The aim is to reduce rejections and queries caused by incorrect or incomplete information, so that applications are processed faster.
Faster refunds
Refund processing is set to speed up, particularly for zero-rated supplies and cases involving an inverted duty structure, where tax on inputs is higher than tax on outputs. Reports indicate that 90 per cent of eligible refund claims will be paid on a provisional basis, which should ease working capital pressure on exporters and manufacturers.
Threshold for show-cause notices
The package also sets a minimum threshold of Rs 10,000 for issuing show-cause notices, which is meant to prevent tax authorities from pursuing very small disputes.
Phased rollout
The reforms will be introduced in phases. Process changes that do not need amendments to the law are expected from November 1, 2026. Those requiring legislative changes are targeted for April 1, 2027.
Why it matters
Industry has long asked for lower compliance costs for small businesses. Easier registration and quicker refunds could help more small sellers enter the formal economy and expand across states without a heavy paperwork burden. Taxpayers, however, will need to watch the final notifications for eligibility conditions and operational details.
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