GST changes from November 1 will simplify registration for small online sellers, speed up selected refunds and give businesses greater flexibility to offer discounts after a sale. The reforms, approved at the 57th GST Council meeting on October 8, will be implemented in phases from November 1, 2026, according to a report by the Times of India.
The changes target several areas of Goods and Services Tax compliance, including registration, returns, refunds and the tax treatment of post-supply discounts. They are expected to reduce administrative costs for small businesses and sellers using e-commerce platforms to reach customers across multiple states and Union Territories.
Under the revised registration rules, eligible small sellers will not need to maintain a physical office in every state where their goods are stored. Sellers that pass on input tax credit of up to Rs 2.5 lakh per month will be allowed to use an e-commerce operator’s warehouse as their principal place of business in states where they do not have a physical presence.
The arrangement will require the seller to have a genuine physical presence in at least one state. Aadhaar authentication and physical verification will be carried out there. In other states, the seller can obtain GST registration with the consent of the e-commerce platform, without further involvement from a tax officer. The change is expected to benefit around 9.5 lakh small sellers and reduce the cost of expanding operations across India.
The revised approach is also intended to create greater tax parity between competing e-commerce business models. For sellers operating from warehouses serving customers in multiple markets, the earlier requirement to establish offices in each state could add compliance and operating costs. The new system links registration in other states to the warehouse arrangement and the platform’s consent.
Businesses applying for GST registration will also receive a more standardised process. The GST portal is expected to provide clearer information on the documents and details required, along with improved navigation, drop-down lists and tooltips. These changes are intended to reduce errors, avoid queries caused by incomplete or incorrect submissions, and speed up approvals.
The refund process will also include more automated approvals. Refund claims for the full excess balance available in a taxpayer’s electronic cash ledger will be sanctioned automatically by the system without approval from a tax officer. For refunds linked to zero-rated supplies and an inverted duty structure, 90% of the claimed amount will be provisionally sanctioned through an automated, risk-based process.
The Council has also approved more flexibility for post-supply discounts. Businesses will be able to offer discounts after a sale without meeting the earlier requirements of having a pre-existing agreement or linking the discount to specific invoices. Safeguards will remain in place for credit notes and the corresponding reversal of input tax credit. The change is expected to assist businesses offering volume-based incentives, trade schemes and year-end rebates.
The GST Council’s decisions requiring administrative changes will be introduced in phases beginning November 1. The implementation will determine how quickly sellers, tax applicants and businesses seeking refunds experience the revised procedures.
