The next phase of GST 2.0 reforms could bring several changes aimed at making indirect tax compliance simpler for businesses and reducing disputes with tax authorities. The GST Council is scheduled to meet on Wednesday, October 7, and is expected to discuss measures covering GST registration, return filing, movement of goods and tax disputes.
The proposed changes follow the GST 2.0 reforms introduced in September 2025, when indirect taxes on hundreds of products were rationalised.
Among the proposals likely to be considered is a measure that could make compliance easier for small e-commerce businesses operating across multiple states.
Small E-Commerce Sellers May Get Relief
Under the proposed system, small e-commerce platforms could be allowed to use the warehouse operated by the platform as their registered place of business in states where they do not maintain their own premises.
This could significantly reduce the cost and administrative burden of maintaining separate business locations across different states. Businesses would potentially need to maintain just one unique presence in a state for physical verification and Aadhaar authentication.
For other states, the warehouse address could potentially be used as the registered address after an arrangement with the warehouse owner.
The proposal could benefit as many as 9.5 lakh small sellers. If approved and implemented, it may allow smaller e-commerce businesses to sell across the country without establishing offices in every state where their goods are stored.
Input Tax Credit and GST Litigation
The GST Council may also consider measures aimed at protecting genuine buyers who possess valid invoices but whose suppliers fail to pay the applicable tax.
Under the proposed approach, a genuine purchaser could retain the benefit of input tax credit, while recovery proceedings could instead be directed towards the supplier who failed to meet the tax obligation.
Such a move could reduce a major source of GST-related disputes and provide greater certainty to businesses purchasing goods or services from smaller and newer vendors. It could also encourage companies to expand their supplier base.
Another proposal under consideration could prevent GST notices from being issued when the tax demand is below ₹10,000. A significant share of GST disputes is linked to such small-value demands, with officials indicating that they account for around one-fifth of all disputes.
The proposed measure could also cover existing cases at the adjudication and appeal stages.
For demands exceeding ₹10,000, GST officers may first be required to send an intimation to the taxpayer. This would give the taxpayer an opportunity to respond before a formal notice is issued. A notice could follow if the response is considered unsatisfactory.
The Council may also look at introducing common standards for raising and deciding tax demands.
GST Registration Process May Become Simpler
Simplifying GST registration is another area expected to receive attention. The proposed system could provide step-by-step guidance to applicants, helping them complete applications correctly at the first attempt.
The new process may also generate a customised list of documents required for submission. Information already available from an existing GST registration in another state could potentially be carried forward instead of being entered again.
For businesses seeking GST registration in multiple states, the proposed system could also allow applications for different states to be completed together, reducing repetitive paperwork and making the overall registration process more efficient.
Disclaimer: The proposals mentioned in this article are subject to consideration and approval by the GST Council. The final provisions, eligibility conditions and implementation timelines may differ from the proposals discussed before the meeting. Readers should refer to official GST notifications and government updates for the final rules.