Under the GST laws, there was a need for a simplified GST Registration Scheme to counter the persisting issues faced by the assessees in obtaining GST registration that have been highlighted at various forums. As per Notification No. 18/2025 – Central Tax dated 31st October, 2025, the Central Board of Indirect Taxes and Customs has inserted 2 new rules i.e. Rule 14A and Rule 9A in the GST law to introduce a simplified GST registration scheme to bring small business into the formal economy by simplifying the registration process.
Need for a simplified GST registration scheme
There have been several instances where the assessees who are interested in obtaining GST registrations have faced challenges that have prevented them from entering into the formal economy such as –
- Delays in the physical verification process,
- Minor discrepancies in documents leading to rejections,
- Multiple queries and documents required from small businesses, amongst others.
Therefore, there was a need for a simplified GST registration scheme for addressing these common challenges faced by a large section of the economy.
Rule 14A – ‘Option for taxpayers having monthly output tax liability below threshold limit’
As per the newly inserted Rule 14A – ‘Option for taxpayers having monthly output tax liability below threshold limit’ – any person, who on his own assessment feels that his output tax liability on the supply of goods and services or both, to registered persons will not exceed Rs. 2.50 lacs per month, shall be eligible for this simplified GST registration scheme under Rule 14A. The threshold limit for the output tax liability of Rs. 2.50 lacs per month includes CGST, SGST, IGST as well as compensation cess.
Rule 14A – Advisory
As per the latest advisory released on the GSTN portal on 01.11.2025, the following features must be kept in mind while opting for this simplified GST registration scheme –
- Aadhar authentication is mandatory for the Primary Authorized Signatory and atleast one promoter/partner. However, Aadhar authentication will not be a required if the assessee falls under the category of exempt specified persons u/s 25(6D) of the CGST Act, 2017 covering PSUs, non-citizens of India, local authorities, etc.
- A person opting for GST registration under Rule 14A in one state or union territory will not be allowed to apply for another GST registration under Rule 14A in any other state or union territory on the same PAN.
- Once the ARN has been generated, the registration will be electronically granted within 3 working days subject to aadhar authentication.
- There should be no pending amendment or cancellation application for registration availed under rule 14A.
- There should be no initiated or pending proceedings under Section 29 (cancellation of registration) for registration availed under rule 14A.
How to apply for GST registration under Rule 14A?
In order to facilitate the simplified GST registration scheme under Rule 14A, the Form REG – 01 has been amended to include the following clause in the application form in Part B after Serial No. 4 –
“4.1 – Option for registration under rule 14A – Yes or No.”
“4.1.1 – Declaration by person opting for registration under rule 14A – I hereby declare that the aforesaid business shall abide by the conditions and restrictions specified in the Act or the rules for opting to register under rule14A”
Withdrawal from the simplified GST registration scheme
Any taxpayer intending to withdraw from this simplified GST registration scheme at a later stage must fulfill the following conditions –
- The taxpayer must ensure that all returns due from the effective date of registration upto the date of filing the withdrawal application have been filed.
- If the taxpayer wishes to withdraw from the scheme before 1st April, 2026, then returns for a period of minimum 3 months must be filed before application for withdrawal.
- If the taxpayer wishes to withdraw from the scheme after 1st April, 2026, then returns for a period of minimum 1 tax period must be filed before application for withdrawal.
Upon verification of the withdrawal application under Form REG – 32, the proper officer may approve the withdrawal by issuing Form REG – 33 or reject the application by issuing Form REG – 05. Once the taxpayer has received the approved Form REG – 33 on the GSTN portal, he may file returns with output tax liability higher than Rs. 2.50 lacs per month from the first day of the succeeding month in which the said order has been issued.
This ensures that taxpayers cannot retroactively modify their output tax liability for periods prior to the withdrawal order in a way that would push it beyond the Rs. 2.50 lacs limit. It serves as a safeguard to prevent exploitation of the lower threshold provision.
Moreover, the concept of “deemed approval” under Rule 9(5), where an application is automatically accepted if no response is made by the officer within the prescribed time will not be valid in such situations. This provision ensures that cases involving serious grounds for cancellation are carefully reviewed, eliminating any possibility of using withdrawal as a way to avoid cancellation proceedings.
Rule 9A – ‘Grant of Registration Electronically’
As per the newly inserted Rule 9A, notwithstanding anything contained in Rule 9, any person who has applied for registration under Rule 8 (Normal Registration) or Rule 12 (Registration for TDS/TCS deductors) or Rule 17 (Non-Resident Taxable Persons/Casual Taxable Persons), shall, upon identification on the common portal based on data analysis and risk parameters, be granted registration electronically by the common portal, within 3 working days from the date of submission of application.
Therefore, this is an alternative to Rule 9 and is applicable for taxpayers applying for registration under Rule 8 (Normal Registration) or Rule 12 (Registration for TDS/TCS deductors) or Rule 17 (Non-Resident Taxable Persons/Casual Taxable Persons).
FAQs
Q1. What is the effective date for Rule 14A and Rule 9A?
A1. The effective date for the newly inserted Rule 14A and Rule 9A is 01.11.2025.
Q2. How to amend Form REG – 32 (Application for Withdrawal from Scheme) ?
A2. Once FORM GST REG-32 is filed, no amendment application will be allowed to be filed till the disposal of application under FORM GST REG-32.
About the Author This article is written by FCA Eshita Krishna , an experienced Chartered Accountant with advanced ICAI certifications in DISA, Anti-Money Laundering, Real Estate Laws, and Forex & Treasury Management. With strong expertise in direct and indirect tax, audit, risk advisory, financial planning, and financial management, she delivers accurate, experience-backed financial insights to readers.