Simplified GST Registration Scheme (Rule 14A)

Registration under GST gives legal recognition to a business as a supplier of goods or services, allowing it to collect taxes from customers, claim ITC, and file periodic returns.

There are different schemes for registration, depending on the nature and size of the business. The Regular Registration Scheme applies to most companies whose turnover exceeds the threshold limit as specified. The Composition Scheme is a simpler version that has lower rates and requires fewer returns for small taxpayers. The government has also proposed a Simplified GST Registration Scheme under Rule 14A, which is going to be effective from November 1, 2025, to give speed and ease in the registration for small providers with minimal tax liability.

Such schemes promote inclusiveness and flexibility in the GST regime, allowing every business enterprise, each within its own different scale, to determine an appropriate compliance path. These also achieve better transparency and prevent tax evasion, formalising the economy in the process.

What is Rule 14A?

The GST Registration Scheme, notified under Rule 14A of the Central Goods and Services Tax (CGST) Rules, 2017, shall be effective from November 1, 2025, for fast-tracking and facilitating the registration process for small taxpayers. The objective is to make the registration process more convenient and easier for businesses with relatively low monthly output tax liability and to boost voluntary compliance.

Persons having a total of a monthly output tax liability on the sale of an intra-state registered entity (including CGST, SGST/UTGST, IGST, and Compensation Cess) below ₹2.5 lakh are eligible to apply for registration under Rule 14A, instead of Rule 8. The eligibility will be self-assessed, and the applicant shall also perform Aadhaar authentication for the Primary Authorised Signatory as well as at least one Promoter or Partner.

Registration under Rule 14A is completely voluntary. It may be withdrawn subsequently if the liability of the taxpayer exceeds the limit specified. Application for registration is made online, and normally it takes three working days, which makes it more popular for small business customers

Eligibility Under Simplified GST Registration Scheme (Rule 14A)

The GST Registration Scheme, notified by Rule 14A, effective November 1, 2025, has smoothed the process of registration for small taxpayers whose tax liabilities are low. Its objective is to reduce compliance time and speed up the process of registration for genuine taxpayers. The following are the main requirements of eligibility specified under Rule 14A:

1. To register as a taxpayer under GST, one must apply in accordance with Rule 8 of the CGST Rules, 2017. If one fulfils the necessary conditions, he is eligible to register under Rule 14A.
2. The total output tax liability on supplies made to registered persons for the month in terms of CGST, SGST/UTGST, IGST, and Compensation Cess has not exceeded ₹2.5 lakh. This threshold is applicable solely to B2B transactions and is determined through self-assessment.
3. Aadhaar Authentication Requirements: Primary Authorised Signatory and at least one Promoter or Partner must be authenticated through OTP or biometric verification.
4. Only one registration per state or union territory: Rule 14A prohibits multiple registrations within the same state or union territory under the same PAN.
5. There shall not be any case of fraud, misrepresentation, or suppression of facts under the GST laws. The already obtained registrations should not have been cancelled for non-compliance.
6. Voluntary Option: Registration under Rule 14A is optional. If he does not wish to take advantage of this streamlined option, he may apply through the standard registration process.
7. Continued compliance with filing returns and paying on time regularly.

If the tax liability later exceeds ₹2.5 lakh per month, the scheme under Rule 14A(4) has to be opted out.

How to Apply for Simplified GST Registration Scheme (Rule 14A)?

1. Eligibility and Pre-Check

• Check if your estimated monthly output tax liability for CGST, SGST, UTGST, IGST, and compensation cess is less than ₹2.5 lakh for supplies to registered persons. Thus, if you think your B2B tax liability for a month is less than the above-mentioned threshold, then you can do self-assessment and apply for registration under Rule 14A.
• Apply for registration under Rule 8 (the new registration pathway) and select the option for Rule 14A.
• The Aadhaar authentication (via OTP/biometric) shall be mandatory for the Primary Authorised Signatory and at least one Promoter/Partner.
• Under Rule 14A, a second registration in the same State/UT cannot be applied for using the same PAN.
• Participation in this scheme is not compulsory; you are otherwise free to use the normal registration process.

2. Filing Application – Form GST REG-01

• Access the GST Common Portal- www.gst.gov.in, go to Services, Registration, and click New Registration.
• Fill up FORM GST REG-01 Part A with your PAN, mobile number, email, state/UT, and other relevant information.
• For Part B (as adjusted for Rule 14A), answer “Yes” to the question dealing with “Option for Registration under Rule 14A.”
• Verify the Aadhaar of the concerned persons.
• Registration requirements include the uploading of proof of business address, bank account details, and identity of the authorized signatory.
• Submit the application; an ARN, or Application Reference Number, will be generated.

3. Grant of Registration

• Since you have opted for Rule 14A and fulfilled the eligibility/Aadhaar requirement, the system may grant registration electronically within three working days, subject to risk analytics clearance.
• You will be issued a GSTIN and a GST registration certificate through the portal after approval. You can start supplies and file GST returns as a registered taxpayer.

4. Ongoing Compliance & Monitoring

• Your registration under Rule 14A continues as long as your monthly B2B output-tax liability remains at or below the threshold and you comply with all GST obligations, such as return filings and payment of dues.
• If you estimate, at any time, liability to exceed ₹ 2.5 lakh/ month, you need to opt out of Rule 14A and migrate to the regular registration track so that you avoid non-compliance or risk.

5. Buy-out Process (if necessary)

• If you need to exit Rule 14A (for example, your tax liability crosses the threshold): file FORM GST REG-32 (Application for Withdrawal) on the portal.
• Conditions for withdrawal: ensure all returns due from registration date up to withdrawal application date are filed; and depending on timing, at least 3 months of returns (if before 1 April 2026) or at least one tax period (if on/after 1 April 2026) must have been filed.
• Proper Officer issues a withdrawal order in FORM GST REG-33, after verification; upon approval, you continue under the normal registration regime (no new GSTIN required).

How to Withdraw From Simplified GST Registration Scheme (Rule 14A)?

As per Rule 14A of the CGST Rules, 2017, the taxpayers registered under the Simplified GST Registration Scheme may opt to cancel their registration either because their tax liabilities have exceeded the threshold limit or because they want to migrate to the standard registration regime. The process is very easy and can be performed entirely online through the GST portal.

1. Eligibility for Withdrawal:

• A Rule 14A withdrawal is allowed if the monthly output tax payable on sales to registered persons exceeds ₹ 2.5 lakh.
• Taxpayers can withdraw voluntarily even when within the limit, in case they prefer the standard GST registration.
• They need to make sure that before requesting a withdrawal, they are current with all returns and tax payments.

2. Filing Application Form GST REG-32:

• Go to the GST Common Portal gst.gov.in and navigate to Services → Registration → Application for Withdrawal from Simplified Registration (Rule 14A).
• Fill out the Form GST REG-32, stating the reason for withdrawal, the period of registration, and the acknowledgement number.
• At the time of withdrawal, before submitting, ensure that all returns have been submitted from the time of registration to the time of withdrawal.

3. Filing Period Requirements:

• If the application for withdrawal is submitted prior to April 1, 2026, it is required to have filed returns for at least three months from the date of registration.
• If the application is submitted after April 1, 2026, at least one return needs to have been filed.

4. Processing & Approval:

• Your application will be scrutinised by the Proper Officer after submission.
• An Order of Withdrawal will be issued electronically in Form GST REG-33 upon approval.
• My GSTIN will be valid under the category of standard registration, and no new registration is required. This process allows me to transition seamlessly from the simplified GST registration scheme while ensuring compliance with all GST regulations.

Conclusion

A major step toward simplifying the registration process for small and medium-sized businesses in India is Rule 14A of the GST Registration Scheme. The government wants to make GST compliance easier by letting taxpayers have a mechanism for selecting a simpler and less time-consuming registration procedure where their monthly output tax liability on the supply to registered people does not surpass ₹2.5 lakh.

Besides, voluntary withdrawal under the rule when liability exceeds the threshold provides an efficient way for taxpayers to switch over to the standard registration framework whenever necessary. Convenience combined with compliance builds trust between businesses and tax authorities.