New Delhi, Oct 23:
A series of Goods and Services Tax (GST) process reforms, including simplified registration for small e-commerce sellers, faster refunds and streamlined registration procedures, are expected to take effect from November 1, 2026.
The measures were approved at the 57th GST Council meeting held on October 8. Reforms that can be implemented through administrative procedures will be introduced in phases from November, while changes requiring amendments to the GST law are expected to come into force from April 1, 2027.
States and Union Territories where they store goods without establishing a separate physical business premises in each location. They can declare an e-commerce platformās warehouse as their principal place of business, subject to prescribed conditions.
The facility is expected to benefit around 9.5 lakh small sellers and help them expand their businesses across the country. Sellers must have a genuine business presence in at least one State, where physical verification and Aadhaar authentication will be completed.
The government will also simplify GST registration by specifying the documents and information required for applications. The GST portal will feature clearer forms, drop-down menus and improved navigation to reduce errors, queries and rejection of applications.
Refund processing is another key area of reform. Refunds of excess balances in electronic cash ledgers will be sanctioned automatically without officer intervention. The time limit for issuing an acknowledgement or deficiency memo for refund claims will be reduced from 15 days to 10 days.
For eligible refund claims relating to zero-rated supplies and the inverted duty structure, 90 per cent of the claimed amount is proposed to be sanctioned provisionally through automated, risk-based processing.
The reforms also propose a minimum threshold of Rs 10,000 for issuing GST show-cause notices, with the aim of reducing avoidable disputes and compliance burdens. The government expects the changes to improve ease of doing business, speed up refunds and make GST procedures more transparent for taxpayers.