Whereas headlines give attention to GST price cuts, two silent however sweeping modifications are set to hit taxpayers this November—quicker refunds for inverted obligation buildings and a radically less complicated registration course of.
Sujit Bangar, founding father of TaxBuddy.com, flagged the dual shifts in a LinkedIn submit, calling them “game-changing” for working capital administration and compliance ease.
From November 1, 2025, taxpayers with an inverted obligation construction—the place enter GST is increased than output GST—might be eligible for 90% provisional refunds on unutilised enter tax credit score (ITC). These refunds might be processed primarily based on threat profile, with the remaining 10% cleared after verification. Officers can withhold refunds solely in distinctive instances, and should doc causes.
It is a marked departure from the present system, which depends closely on handbook scrutiny and affords no assured timelines. Bangar illustrated the shift utilizing a photo voltaic lamp producer for example: enter GST totals ₹3,840 whereas output GST is just ₹2,000, leaving ₹1,840 in unclaimed ITC. Underneath the brand new system, ₹1,656 (90%) could be refunded nearly instantly, bettering money cycles.
A second reform will make GST registration simpler for low-risk companies. Corporations with month-to-month B2B output tax underneath ₹2.5 lakh will qualify for automated registration approval inside 3 working days. Handbook checks and website visits might be eradicated for these candidates, which the federal government estimates make up 96% of latest registrations.
The brand new course of additionally permits opt-in/opt-out flexibility, aiming to speed up onboarding for startups and MSMEs.
“These modifications might not make headlines, however they’ll make stability sheets breathe simpler,” Bangar wrote.
