Next-Gen GST Reforms from Nov 1: FM Sitharaman Warns ‘Black Sheep’, Promises Respect for Honest Taxpayers

Finance Minister Nirmala Sitharaman on Friday announced a new phase of Goods and Services Tax (GST) reforms, simplifying registration and compliance for small businesses and public sector entities starting November 1.

Speaking at the inauguration of a new CGST office in Ghaziabad, Sitharaman said the initiative marks a crucial step in the government’s ongoing efforts to make India’s tax system simpler, technology-driven, and taxpayer-friendly.

“CBIC worked hard to deliver these reforms before Navratri. These reforms will be remembered for the next 100 years,” she said, praising the Central Board of Indirect Taxes and Customs (CBIC) for rolling out next-generation changes ahead of schedule.

⚙️ Simplified GST Registration

Under the new framework, small, low-risk businesses and public sector undertakings (PSUs) will now receive GST registration approvals within three working days, significantly reducing procedural delays.

Sitharaman highlighted that the upcoming reforms will address classification clarity, inverted duty structures, and ease of compliance — all key concerns raised by taxpayers in recent years.

“Taxpayers must not do the heavy lifting,” she said, urging tax officers to leverage technology to simplify processes and ensure faster resolutions.

⚖️ Warning to ‘Black Sheep’ and Fake Invoice Operators

While championing ease of compliance, Sitharaman also took a firm stance against tax evasion and corruption within the system.

“Galat kiya toh khair nahi, sahi kiya toh vair nahi,” she declared — meaning, “No mercy for the wrongdoers, no hostility for the honest.”

She directed officials to take swift and fair disciplinary action against those involved in fake invoicing and wrongful input tax credit (ITC) claims, warning against the “black sheep” tarnishing CBIC’s reputation.

However, she urged officers to balance enforcement with empathy, stating that honest taxpayers should be treated “with honour and respect.”

“Next-generation GST isn’t just about slabs and rates — it should change how taxpayers feel. Be polite, but don’t mistake politeness for leniency,” she added.

💹 GST Driving Record-Breaking Diwali Sales

Sitharaman also cited data from the Confederation of All India Traders (CAIT), noting that Diwali 2025 witnessed record sales of ₹6.05 lakh crore, up 25% from the previous year.

Of this, ₹5.4 lakh crore was spent on goods and ₹65,000 crore on services. Notably, 87% of goods sold were Indian-made, while e-commerce grew 24% year-on-year, indicating the positive impact of GST rate rationalization on domestic demand.

The festive boom also created nearly 50 lakh temporary jobs across sectors such as logistics, retail, packaging, and delivery, the minister said, attributing the growth to India’s expanding formal economy under GST.

🔮 Looking Ahead

Concluding her address, the Finance Minister urged tax officials to adopt a forward-thinking mindset, emphasizing initiative and innovation in administration.

“Don’t wait for guidelines — solve problems with a thinking mind,” she said. “Next-gen GST reforms should make taxpayers feel respected, not viewed with suspicion.”

The upcoming changes are part of a broader government strategy to modernize tax systems, reduce compliance burdens, and strengthen trust between businesses and tax authorities.

Originally published on newsworldstime.com.