GSTN Introduces Simplified GST Registration Scheme under Rule 14A

GSTN Advisory, Dated 01-11-2025

1. Introduction

The Goods and Services Tax Network (GSTN) has issued an advisory introducing a Simplified Registration Scheme under Rule 14A of the CGST Rules, 2017. This new framework became effective from 1st November 2025 and is aimed at easing the compliance burden for small taxpayers.

2. Objective of Rule 14A

Rule 14A seeks to encourage voluntary compliance by small businesses and service providers whose tax liability is minimal. It provides a streamlined and automated registration process, ensuring faster approval and reduced documentation.

3. Eligibility Criteria

Only small taxpayers meeting the following condition can opt for registration under Rule 14A:

• The total output tax liability on the supply of goods or services, or both, made to registered persons must not exceed ₹2.5 lakh in a month.
• The taxpayer must not hold more than one registration per State or Union Territory under the same Permanent Account Number (PAN).

4. Key Features of the Scheme

• Automatic Electronic Registration – Eligible taxpayers will receive auto-approved GST registration within three days from the date of submission of FORM GST REG-01.
• Aadhaar Authentication – Mandatory Aadhaar verification is required for:

1. 1. The primary Authorised Signatory, and
   2. At least one Promoter or Partner of the entity.

• Single Registration Restriction – Multiple registrations in the same State or Union Territory under one PAN are not allowed.
• Application Procedure – Applicants must select ‘Yes’ for Rule 14A in FORM GST REG-01 while applying for registration.

5. Procedure for Withdrawal of Registration

Taxpayers opting to withdraw registration under Rule 14A must adhere to the following conditions:

• Return Filing Requirement – All pending returns from the date of registration till withdrawal must be filed.
• Minimum Filing Period:

1. 1. If the withdrawal occurs before 1st April 2026, at least three months’ returns are required.
   2. If the withdrawal occurs on or after 1st April 2026, at least one tax period’s return must be filed.

• Restriction on Withdrawal – Withdrawal will not be permitted if any of the following are pending:

1. 1. Application for amendment of registration,
   2. Application for cancellation, or
   3. Cancellation proceedings initiated by the department.

6. Conclusion

The introduction of Rule 14A represents a significant step towards simplified compliance under GST. By enabling faster, fully electronic registration and easing exit procedures, the scheme is expected to promote ease of doing business and broaden the tax base through voluntary participation by small taxpayers.

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