New GST Registration System from November 1, 2025: What Small Businesses and Accountants Should Know
Good news for small business owners and accountants!
From November 1, 2025, the Government of India will launch a new GST registration system under GST 2.0.
This update will make tax filing faster, simpler, and more transparent — especially for small and medium businesses (SMEs).
For accountants and CA firms, it means easier onboarding, fewer errors, and more time for real advisory work instead of paperwork.
Why This Change?
Many small businesses have faced long delays and repeated document checks while registering for GST.
These manual steps often slowed down operations and added extra costs.
The new GST 2.0 registration system aims to fix that. It will use automation and technology to make the process smooth, quick, and accurate.
As Finance Minister Nirmala Sitharaman said, the goal is to make GST faster, fairer, and safer — helping honest taxpayers while catching fraud better.
Key Highlights of the New GST Registration System
1. Automatic Approval for Low-Risk Applicants
If your business is low-risk, your GST registration will be approved automatically.
That means no manual checking and no long waiting period.
This is a big win for startups, small traders, and service providers who maintain clean books and proper tax records.
- Tip for Accountants:
Keep your clients’ PAN, Aadhaar, and financial records updated in accounting software.
Accurate documentation helps your clients qualify as low-risk applicants.
2. Faster Registration — Within 3 Working Days
Under GST 2.0, most registrations will be done in three working days or less.
This means you can start your business or issue invoices faster, without waiting weeks.
For accountants, it also means quicker GSTIN generation — and fewer penalties from delayed filings.
3. 96% of New Applicants Will Benefit
The government expects 96% of new GST applicants — especially small businesses with monthly tax payments under Rs. 2.5 lakh — to benefit from the new system.
That’s great news for SMEs and CA firms managing multiple client registrations.
Smarter Fraud Control
GST 2.0 also brings a smarter way to fight fraud.
Using data analytics and AI, the system will now flag high-risk cases — like fake registrations, invoice mismatches, or refund scams.
This means genuine taxpayers and compliant businesses will face fewer random checks.
- For CAs : Clients with clean books and timely filings will see fewer notices or delays.
Other Big Changes Under GST 2.0
Besides the new registration rules, the government plans more updates:
-
Simpler Tax Slabs: Only two main GST rates — 5% and 18% — to make compliance easier.
-
Higher GST on Luxury & Sin Goods: A 40% rate for items like luxury cars, tobacco, and sugary drinks.
-
Auto Refunds & Risk-Based Audits: The system will soon automate refunds and use AI to decide which accounts need audits.
-
System Integration: GSTN will connect with Income Tax and MCA systems — improving accuracy and reducing errors.
Impact on Accounting and Bookkeeping
These changes directly affect how accountants and bookkeepers work:
-
Faster Turnaround: With quick registration, accountants can onboard clients faster and start GST filings right away.
-
Better Accuracy: Linked systems reduce manual errors between GSTR-1 and GSTR-3B.
-
Less Paperwork: Fewer physical verifications and KYC resubmissions.
-
Higher Trust: CA firms that update clients about new laws will earn more credibility and loyalty.
Pro Tip:
Use accounting software that connects directly to GSTN.
It checks invoices in real time, cuts down errors, and keeps your firm ready for audits.
How Businesses Should Prepare Before November 1, 2025
Here’s a quick checklist for business owners and accountants:
-
Review all business documents – Make sure PAN, Aadhaar, and address proofs are current.
-
File pending returns – Clear old GST filings to avoid delays.
-
Know your risk category – Keep clean financial records to be marked as low-risk.
-
Upgrade accounting systems – Sync your invoicing and bookkeeping tools with GSTN.
-
Talk to your CA – Your Chartered Accountant can help identify and fix compliance gaps before the new rules begin.
Steps Businesses Should Take Now
Here’s a simple checklist to stay compliant and ready:
1. Review All Accounts
List all company bank accounts, FDs, lockers, and safe custody items.
Check if each has a nominee.
Verify that nominee details (name, address, contact) are up-to-date.
2. Decide Your Nomination Strategy
Choose successive or simultaneous nomination.
For example:
-
Successive: First spouse, then child.
-
Simultaneous: 60% spouse, 40% charity.
Document your choice and keep signatures of all authorized persons.
3. Update Nomination Forms
Visit your bank to submit updated forms (most will roll these out by November 2025).
Include nominee contact details such as phone and email — the RBI now recommends this.
4. Maintain a Nomination Register
Create a central register that records all nominations. Review it once a year.
If your company uses accounting or bookkeeping software, tag each account with nominee details.
5. Train Your Team
Brief finance and branch teams about the new rule.
Remind all stakeholders — directors, partners, and family — to update their nominations.
What Experts Are Saying
Experts say the success of this change depends on how well the GSTN system handles real-time verification and risk tagging.
If implemented properly, it will make compliance smoother for millions of small businesses and give accountants more time for advisory work rather than chasing paperwork.
FAQ’S
Q1: Does this rule apply to all banks and depositors?
Yes. From November 1, 2025, the changes under the Banking Laws (Amendment) Act, 2025 and the RBI’s implementing guidelines apply to deposit accounts, lockers and safe-custody articles across banks in India.
Q2: Can I have more than four nominees?
No. The updated rule allows up to four nominees. Having more than four is not permitted under the amended act.
Q3: What happens if I already have one nominee and do not update the form?
The existing nomination remains valid, but you will miss out on the enhanced flexibility (multiple nominees or split shares) allowed under the new rules. It’s advisable to update before or soon after Nov 1.
Q4: Does nomination replace a will or succession planning?
No. Nomination is a helpful tool for assets at banks/lockers, but your legal heirs, will, and succession laws may still govern ultimate ownership. The nominee acts as custodian.
Q5: Does the rule apply to business-owned deposits?
Yes. If your business holds deposits or safe-custody items, these rules are relevant. It is good governance for companies and firms to review and update nominations accordingly.
Conclusion:
The RBI’s new nomination rules are not just a compliance update — they’re a chance to protect your business from future risks.
Don’t wait until it’s too late. Contact eFilingcompany today for a free nomination audit.
We’ll help you update records, train your team, and integrate this into your accounting system — so your business stays safe, compliant, and future-ready.
Share With Us