“We’re trying to come up with some sort of a uniform circular, which will be approved by the GST Council. That will provide uniform guidelines, not only for the officers, but also for taxpayers. We’re talking to the states in this regard. At present, there is a ‘non-uniformity’ in the procedure followed by the central GST formation and various state formations in granting registration under GST to large businesses who pass on credit over Rs 2.5 lakh/month and this creates uncertainty in the minds of taxpayers,” he said. — Representational Image

New Delhi:  The Centre and states are mulling new guidelines to bring uniformity in documents that are to be submitted for faster processing of goods and services tax (GST) registration application of businesses who pass on tax credit of over Rs 2.5 lakh a month, a senior finance ministry official said on Friday.

Once agreed to by all states and the centre, the proposal will be placed before the next GST Council meeting to be chaired by Union finance minister Nirmala Sitharaman and comprising ministers from all states and UTs. “Tax officers are also discussing automation in the process of cancellation of GST registration and streamlining the grounds on which a GST officer can cancel registration of a business,” said CBIC member GST Sanjay Mangal in an event.

“We’re trying to come up with some sort of a uniform circular, which will be approved by the GST Council. That will provide uniform guidelines, not only for the officers, but also for taxpayers. We’re talking to the states in this regard. At present, there is a ‘non-uniformity’ in the procedure followed by the central GST formation and various state formations in granting registration under GST to large businesses who pass on credit over Rs 2.5 lakh/month and this creates uncertainty in the minds of taxpayers,” he said.

The GST Council in its September 2025 meeting had already approved a simplified GST registration scheme for small and low-risk biz and the same was rolled out from November 1. Small and low-risk businesses applicants whom the GST system identifies based on data analysis, or those applicants who self-assess that their output tax liability does not exceed Rs 2.5 lakh per month (inclusive of CGST, SGST/UTGST and IGST) can opt for the scheme.

About 1.68 crore businesses are currently registered under GST. However, the official said about 65 per cent of GST registrations are now happening through this route. “For the remaining 35 per cent of the new registration application, mainly for the slightly bigger business who wants to pass on credit more than Rs 2.5 lakh per month, the Centre and states officers are working together to bring uniformity to avoid delay or further queries from tax officers,” he said. 

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