Several goods and services tax (GST) process changes, including simplified registration for small sellers operating through e-commerce platforms, faster processing of refunds and streamlined documentation for GST registration, came into effect from November 1.
The changes, approved at the 57th GST Council meeting held on October 8, 2026, are aimed at simplifying compliance for businesses, reducing the need for manual intervention by tax officers and expediting registration and refund processes.
The reforms are being implemented in phases through administrative changes.
Here is a look at the key GST process changes that have come into effect from November 1.
Simplified GST registration for small e-commerce sellers
Small suppliers selling goods through e-commerce operators (ECOs) across multiple states and Union Territories (UTs), where they do not have a physical presence, can now use the e-commerce operator’s warehouse in that state or UT as their principal place of business (PPoB).
This facility is subject to conditions, including that the seller passes on input tax credit (ITC) of up to ₹2.5 lakh per month.
Under the revised process, a seller will need to have a genuine physical presence in at least one state, where physical verification and Aadhaar authentication will be completed. For registrations in other states, the seller can obtain consent from the e-commerce platform without further involvement of a tax officer.
The change is expected to make it easier for small sellers to access markets across the country without setting up physical offices in every state where their goods are stored. The reform could benefit around 9.5 lakh small sellers, according to the information accompanying the announcement.
Streamlined GST registration process
The GST department has specified the documents and information required for registration applications from November 1.
The GST portal will also provide a more user-friendly interface, with clearer navigation, drop-down lists and tooltips to guide applicants through the registration process.
The objective is to reduce errors and incomplete submissions that often lead to application rejections or queries from tax authorities. Standardised documentation and clearer filing instructions are also expected to help expedite the processing of registration applications.
Faster processing of GST refunds
The revised process provides for automated processing of certain GST refund claims, reducing the need for intervention by tax officers.
Under the changes, the full refund of excess balance in the electronic cash ledger will be sanctioned automatically by the system, without officer intervention.
For refund claims arising from zero-rated supplies and the inverted duty structure, 90% of the amount claimed will be sanctioned provisionally through an automated system, without officer intervention. This will be based on the system’s identification and evaluation of risk.
The changes are intended to improve the speed of refund processing and ease working capital pressures for eligible businesses.
Relaxation in norms for post-supply discounts
Businesses will have greater flexibility in offering post-supply discounts under the revised GST provisions.
Earlier, businesses seeking to exclude post-supply discounts from the taxable value had to meet requirements relating to a pre-existing agreement and a linkage between the discount and the relevant invoices.
The revised framework removes the requirement for a pre-existing agreement and invoice-specific linkage for post-supply discounts, while retaining safeguards relating to the issuance of credit notes and the corresponding reversal of input tax credit.
The change is relevant for sectors such as fast-moving consumer goods (FMCG), manufacturing and small businesses, where volume-based incentives, trade schemes and year-end rebates are common commercial practices.
Mahesh Jaisingh, Partner and Indirect Tax Leader at Deloitte India, said the change would be particularly relevant for these sectors. He added that its implementation would provide working capital relief to micro, small and medium enterprises (MSMEs).
-With PTI inputs