NEW GST REGISTRATION 2025

The Goods and Services Tax (GST) has been one of the most significant reforms in India that has transformed its taxation system since its implementation on 1^st July 2017. The launch of this indirect government tax has replaced the traditional complex and fragmented indirect tax system with unified tax structure. Over the past few years, the GST framework has aimed to improve ease of doing business, boost tax governance, enhance digital security and ensure increased operational consistency.

 Key highlights: 

 Faster online GST registration with Aadhaar e-KYC.
  Senior officer approval before physical verification.
  Revised GST rates: 5% (essentials), 18% (standard), 40% (luxury).
  Mandatory for businesses with turnover above ₹40 lakh or inter-state supply.
  Clear document checklist based on business type.
  Avoid errors like incorrect PAN or mismatched addresses.

In the last few years, many good services tax practitioners and business owners have issued many complaints about various problems faced during GST registration, such as unclear processing, mentioned delays, and harassment. Some applicants also faced unclear rejections, physical verification without proper intimation, and repeated document requests. This has created frustration among businesses and professionals.

To overcome these challenges and streamline goods and services tax registration, the Central Board of Indirect Taxes and Customs (CBIC) issued revised instructions on April 22, 2025. These reforms are made to control fake registration and promote ease of doing businesses. These new processes have brought along better accountability, especially with approval from senior officers and clear documentation.

What does GST Registration mean in India?

Goods and Service tax registration is a legal process that allows businesses in India to enroll in the GST system. Through this registration, organizations get a unique Goods and Services Tax Identification Number (GSTIN). This number further helps them to collect tax from customers, operate as a GST-compliant entity, and claim input tax credit.

Latest GST Updates

In its 56^th meeting on September 3, 2025, the GST council introduced new GST reforms that have streamlined the tax system significantly. These new GST reforms have removed the 12% and 28% GST slabs for most goods and services. The revised structure on GST now follows a simplified three-tier rate system, which includes:

●        The new GST on essential goods and services is 5%.

●        The updated rate for the majority of goods and services is 18%.

●        On luxury and “sin” goods, such as high-end vehicles and selected tobacco products, the GST applied is 40%.

These reforms are implemented to reduce tax complexity and lower costs for consumers. Moreover, GST rates on products like two-wheelers, small hatchbacks, ACs, TVs, hair oil, soaps, and toothpaste now fall under the 5% and 18% categories.

In addition, the new GST exemption on individual life and health insurance premiums has made healthcare and financial protection more affordable and accessible for individuals across the nation.

Benefits of Goods and Services Tax

There are huge advantages of GST registration for businesses across various domains, which are as follows:

1. For normal registered companies:

●        Taking ITC (Input Tax Credit)

●        Conducting inter-state business without any restrictions

2. For composition dealers:

●        Restricted compliance

●        Reduced tax liability

●        Better cash flow management

C. For businesses that voluntarily opt-in for GST registration (Below Rs. 40 lakhs):

●        Claim ITC benefits

●        Expand your business across states freely

●        Seamlessly register on online and e-commerce platforms

●        Gain a competitive edge over unregistered businesses

Eligibility for GST Registration

Here are the entities that are eligible for GST registration:

●        Businesses with net turnover exceeding ₹40 lakhs in maximum sales.  

●        Entities that are involved in the interstate supply of goods or services.

●        Businesses that are accountable for tax compliance under the reverse charge mechanism.

●        Normal taxable persons and non-resident taxable persons.

●        Every individual who deducts TDS under GST under Section 51.

●        E-commerce sellers and aggregators under CGST Section 52.

●        Individuals paying tax under the reverse charge mechanism.

●        A person who boost supplies via an e-commerce aggregator (other than supplies specified under CGST Section 9(5))

●        Agents of a supplier and input service distributor

●        People who are needed to pay tax under CGST Section 52

●        Individuals supplying online information and database access or retrieval services from a place outside India, to a person in India other than registered taxable person

●        Any individual providing online money gaming services from outside India to users located in India.

Documents Needed for GST Registration

To apply for GST, you need to provide the following documents. The documents required for the process are mainly based on the type of business you lead.

1. Documents for common people and sole proprietors

If you run the business solely, you need:

●        PAN Card

●        Aadhaar Card

●        Photograph

●        Business address proof, including electricity bill, rent agreement, or property tax receipt

●        Bank account details

2. Documents for Private Limited Companies

If you run a registered company, you need:

●        PAN Card of the company

●        Memorandum and articles of association

●        PAN and Aadhaar of directors

●        Business address proof

●        Bank account details

3. LLP (Limited Liability Partnership)

If you run an LLP firm, you need the following documents:

●        PAN Card of LLP

●        LLP agreement

●        Certificate of Incorporation

●        PAN and Aadhaar of partners

●        Photographs of partners

●        Business address proof

●        Bank account details

Digital verification and Aadhaar e-KYC

In the past few years, new advancements in the digital verification process via Aadhaar e-KYC have significantly streamlined the Goods and Services Tax (GST) registration process. The GST system has also undergone updates to simplify returns and accelerate refunds, especially for exporters. Here are the changes that have made Aadhaar-based-e-KYC process for digital verification faster and more efficient:

●        Introduction of biometric authentication

●        Promote speedy and mandatory verification for GST applicants

●        Offering paperless offline e-KYC options

●        Enhanced privacy and security

Simplified  GST returns and refunds

The GST portal has seen recent changes to bring simple steps for filing of returns and speed up the refund processes for certain taxpayers. Here are the steps how online portal have simplified GST returns:

●        Boosts automatic processing

●        Provides invoice-based filing

●        Supports Aadhaar authentication for refunds

●        Gives faster claims for negative balances

 

Latest updates to the return filing process:

●        Auto-locked GSTR-3B

●        Time-barring for older returns

●        New e-way bill bill portal

Steps for GST Registration Process

Here are the steps that you need to follow while applying for goods and service tax online registration:

●        Step 1: Go to gst.gov.in and click on the options, namely, “Services” — > “Registration” ­­—> “New Registration”.

●        Step 2: In the “Part A” application, you need to fill in PAN, email ID, and mobile number. Then verify them through OTP.

●        Step 3: After successful submission of Part A, a temporary reference number (TRN) is issued to proceed to Part B.

●        Step 4: In Part B, you need to enter business details, then select registration type, and upload documents.

●        Step 5: After that, you need to upload required documents, including identity proof, address proof, bank details, and photographs.

●        Step 6: You need to choose the Aadhaar authentication process for quicker approval, maximum 3 working days.

●        Step 7: Then there is an officer verification process (if applicable). Now it is only allowed with prior Joint Commissioner approval and photo documentation.

●        Step 8: After approval, your GSTIN is then generated, and you can download the certificate in the form of PDF.

Common Mistakes to Avoid while Applying for GST Registration

●        Enter your PAN details to avoid rejection.

●        Upload clear and valid documents.

●        Ensure the provided address details match the application.

●        Avoid applying for the GST registration without checking updates.

Impacts of GST on Imported Goods for Business Owners

The revised GST rates on imported goods have offered wider advantages to business owners:

●        In previous years, most goods fell into the categories of 28% and 12%. Now, with the GST reforms, these goods are realigned into one category of 18%. This means electronic components and small machinery have now become easier to import. It further elevates the global supply chain efficiency.

●        As the updated GST rates are mainly aligned with domestic goods, they generate less tax manipulation. This scenario is expected to boost the relationship between foreign suppliers and local manufacturers.

●        With the GST reforms, the opportunity of claiming IGST as ITC (Input Tax Credit) is expected to remain the same for importers. This is further anticipated to keep the cost in check, ensuring the tax does not cascade completely.

Summing up

The enactment of new GST rates in India has become a robust move by the Indian Government at the meeting of the Goods and Services Tax council. This is expected to become a significant step toward many import and export businesses.

Overall, GST 2.0 is expected to support the growth-driven sectors and impact the non-essential imports. This makes business owners to quickly adapt the new pricing structure and compliance system and even their supply chain. In this way, the emerging brands can become winners in the evolving landscape of the new tax regime 2025.

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FAQs:

1. What are the new GST rates in 2025?

The new GST structure follows three slabs, including 5% on essentials, 18% on most goods and services, and 40% on luxury or sin goods.

2. How long does it take to get GST registration approved in 2025?

With Aadhaar authentication, GST registration can now be approved within 3 working days.

3. Who is required to register under GST in India?

Businesses with annual turnover above ₹40 lakhs or those engaged in interstate supply must register under GST.

4. What are the key documents needed for GST registration?

PAN, Aadhaar, business address proof, bank details, and constitution-related documents are mandatory for registration.

5. What’s new in the GST registration process introduced in April 2025?

The revised process ensures senior officer approval for verification, reduces fake registrations, and simplifies documentation.

Published on 06/11/2015.