Simplified and Speedy GST Registration Scheme (Effective from 1st November 2025)

As per Notification No. 18/2025 - Central Tax dated 31.10.2025

By: Dr. Muhammed Mustafa C T
Senior Tax Consultant & Managing Director, BRQ Associates
“Educating India for Better Tax Compliance.”

1. Background and Objective

To enhance the ease of doing business and reduce compliance burden, the Central Board of Indirect Taxes and Customs (CBIC) has introduced a Simplified GST Registration Scheme under Rule 14A of the CGST Rules, 2017. This is in addition to the new Rule 9A, which enables automatic approval of registration within three working days using data analytics and risk parameters.

This initiative ensures that small taxpayers and low-risk applicants can obtain GST registration faster through automated Aadhaar-based verification, without manual scrutiny.

2. Legal Provisions Introduced

Notification: No. 18/2025 - Central Tax (dated 31 October 2025)
Effective From: 01 November 2025
Key Insertions in the CGST Rules, 2017:

• Rule 9A - Grant of registration electronically within 3 working days (for eligible taxpayers identified via system-based risk analysis).
• Rule 14A - Option for simplified registration for taxpayers with monthly output tax liability up to ₹2.5 lakh.

3. Rule 9A - Automatic GST Registration (System-Based Approval)

Under Rule 9A, taxpayers applying under Rule 8, Rule 12, or Rule 17 are eligible for auto-approval of GST registration within three working days, provided:

1. Their application passes system-based verification based on data analytics and risk parameters.
2. Aadhaar authentication is successfully completed.
3. No adverse risk flag is generated in the backend system.

This applies to:

• Normal taxpayers (Rule 8)
• TDS/TCS deductors or collectors (Rule 12)
• Special entities with UIN (Rule 17)

4. Rule 14A - Simplified GST Registration for Small Taxpayers

Rule 14A offers an option for taxpayers whose monthly output tax liability (CGST + SGST/UTGST + IGST + Cess) does not exceed ₹2.5 lakh.

Eligibility:

• Applicant must apply under Rule 8 using Form GST REG-01.
• Must declare that total monthly output tax liability will not exceed ₹2.5 lakh.
• Aadhaar authentication is mandatory for the primary authorized signatory and at least one promoter/partner.
• Applicant must not have opted out of Aadhaar verification unless exempted under Section 25(6D).
• Only one registration per PAN per State/UT is allowed under this rule.

Approval Timeframe:

Upon successful Aadhaar authentication, registration will be granted electronically within three working days from the date of application submission.

5. Withdrawal from Simplified Registration Option

If the taxpayer’s output tax exceeds ₹2.5 lakh per month or wishes to withdraw from this option, they must follow the withdrawal process under Rule 14A(5).

Steps to Withdraw:

1. File an application in FORM GST REG-32 (electronically on GST portal).
2. Aadhaar-based or biometric authentication required.
3. Proper officer will verify and issue an order in FORM GST REG-33 within the period specified in Rule 9.
4. Once approved, the taxpayer can declare output tax above ₹2.5 lakh from the first day of the following month.

Preconditions for Withdrawal:

• All GST returns must be filed up to the withdrawal date.
• If applying before 1 April 2026, returns for minimum three months must be filed.
• If applying on or after 1 April 2026, returns for minimum one tax period must be filed.
• No pending amendment or cancellation proceedings under Section 29.

6. Forms Introduced / Modified

The new simplified GST registration scheme introduces several updated and new forms under the CGST Rules, 2017:

• Form GST REG-01 is the application form for registration. It now includes an option for taxpayers to select registration under Rule 14A, which applies to small taxpayers with a monthly output tax liability not exceeding ₹2.5 lakh. This form is filed electronically through the GST common portal while applying for new registration.
• Form GST REG-32 is the prescribed form for submitting a withdrawal application from the simplified registration scheme under Rule 14A(5). Taxpayers who exceed the ₹2.5 lakh monthly output tax limit or wish to opt out of the scheme must file this form online.
• Form GST REG-33 is the order issued by the Proper Officer either approving or rejecting the withdrawal request filed under Form GST REG-32. This is governed by Rule 14A(10).
• Forms GST REG-03, REG-04, and REG-05 have been modified to incorporate provisions related to withdrawal proceedings under Rule 14A, ensuring procedural consistency between regular and simplified registration mechanisms.

These updates ensure that taxpayers under the simplified registration scheme have a structured digital workflow for application, withdrawal, and compliance through the GST portal.

7. Key Compliance Points

• Declaration Requirement: During registration, applicants must tick “Yes” for opting under Rule 14A and submit a self-declaration confirming monthly output tax ≤ ₹2.5 lakh.
• Aadhaar Authentication: OTP or biometric verification is compulsory for automatic approval.
• Single Registration Policy: Only one simplified registration per State per PAN.
• Return Filing: GSTR-1/IFF, GSTR-3B must continue to be filed regularly.
• Withdrawal Rules: Cannot modify details or declare higher output tax before official withdrawal approval.

8. Example

Case:
Mr. Rajesh, a jeweller in Kerala, applies for GST registration under Rule 14A on 5 November 2025.

• Declares monthly output tax liability = ₹2,20,000.
• Completes Aadhaar authentication successfully.
  Result: Registration is auto-approved by 7 November 2025.
  If in March 2026, his output tax rises to ₹3,00,000, he must file REG-32 before March-end and can start showing higher turnover only from April 2026 after approval.

9. Related Legal References

• Section 25 - Procedure for registration.
• Section 29 - Cancellation of registration.
• Rule 8 - Application for registration.
• Rule 9A - Electronic grant of registration (auto approval).
• Rule 14A - Option for simplified registration for small taxpayers.
• Notification No. 18/2025 - Central Tax, dated 31.10.2025 (effective 01.11.2025).

10. Key Takeaways

• GST Registration within 3 working days (system-based).
• Simplified process for small taxpayers (output tax ≤ ₹2.5 lakh/month).
• Aadhaar authentication mandatory.
• Withdrawal provisions structured to ensure compliance.
• Automated risk-based analysis for faster onboarding.

For Assistance

For professional help with GST registration, compliance management, and withdrawal under Rule 14A, contact:

Dr. Muhammed Mustafa C T
Senior Tax Consultant & Managing Director - BRQ Associates
???? +91 96331 81898
???? brqassociates@gmail.com | ???? www.brqassociates.com