Govt relaxes rules to boost GST registration among small businesses | Today News

In a significant move to encourage small business participation in the formal economy, the government has relaxed the rules for Goods and Services Tax (GST) registration. The new directive instructs officers to request only the minimum number of documents necessary, streamlining the process for small entrepreneurs. This initiative aims to reduce bureaucratic hurdles and make it easier for small businesses to comply with tax regulations. The decision comes in response to feedback from small business owners who have long cited the complexity of GST registration as a barrier to entering the formal market. By simplifying the documentation process, the government hopes to increase the number of registered businesses, thereby expanding the tax base and boosting overall economic activity. Officials believe that this move will not only enhance compliance but also foster a more business-friendly environment. Experts anticipate that the relaxed rules will lead to a surge in GST registrations, as more small business owners take advantage of the simplified process. This change is expected to particularly benefit startups and micro-enterprises, which often lack the resources to navigate complex regulatory frameworks. As the government continues to prioritize ease of doing business, these reforms are seen as a crucial step towards integrating the informal sector into the mainstream economy.

— Authored by Next24 Live