Overview
On 1 November 2025 the Finance Minister announced a simplified 3‑day auto‑approval system for GST registration intended to improve ease of doing business under the GST framework. This page summarises the announced change, the current legal framework under the Central Goods and Services Tax (CGST) law, and likely notification pathways and impacts.
Legal framework under the CGST law
Section 25 of the CGST Act, 2017
Section 25 establishes the statutory basis for GST registration. It requires persons liable for registration to apply within the prescribed timelines and format and sets out the registration mechanism under the CGST Act.
Rule 9 of the CGST Rules, 2017
Rule 9 contains provisions for verification and approval of registration applications. Key points under the present rule include:
- Designated officers verify submitted applications and documents.
- Initial approval is to be granted within 7 working days from application submission (Rule 9(1)).
- If Aadhaar authentication is completed and there are no risk indicators, registration may be granted within 3 working days (Rule 9(1A)).
Upcoming simplification (effective 1 November 2025)
The announced simplification aims to make GST registration auto‑approved within 3 days for eligible applicants. The mechanism will rely on data analytics, PAN‑Aadhaar linkage and AI‑driven risk assessment to identify low‑risk cases that qualify for auto‑approval. This change is part of the broader GST 2.0 reform agenda to streamline compliance and reduce manual officer intervention.
Legal impact and notification pathway
The change is expected to be formalised by either:
- A notification issued under Section 164 of the CGST Act, 2017; or
- An amendment to Rule 9 of the CGST Rules, 2017, published in the Official Gazette.
Until such an official notification is published, the existing provisions under Rule 9 remain in force.
Comparison at a glance
| Aspect | Present law | Change announced | Governing provision |
|---|---|---|---|
| Time limit for approval | 7 working days (or 3 days with Aadhaar authentication in some cases) | Auto‑approval within 3 days for eligible applicants | Section 25 of CGST Act; Rule 9 (to be amended) |
| Effective date | In force since 1 July 2017 | Proposed from 1 November 2025 | Notification / Rule amendment |
| Objective | Officer verification and approval | Simplified, AI‑enabled automated approval for low‑risk cases | Amendment to Rule 9 and enabling notification |
Practical notes for applicants
- Ensure PAN‑Aadhaar linkage where applicable to improve chances of quicker processing.
- Keep accurate and legible documents uploaded to the portal to avoid manual verification triggers.
- Monitor the official GST portal and the Gazette for the formal notification or rule amendment.
Conclusion
The 3‑day auto‑approval system is a proposed reform under GST 2.0 intended to streamline new registrations and reduce friction for low‑risk applicants. Until an official notification or Rule 9 amendment is published, the existing timelines and verification process continue to apply.