New GST Registration Scheme for taxpayers under The Central Goods and Service Tax (Fourth Amendment) Rules 2025 notified through Notification No 18/2025 dated 31/10/2025
I had an explanation of the new GST registration process introduced by the CGST Fourth Amendment Rules 2025 under Notification No. 18/2025 dated 31/10/2025. The amendments introduce new rules and update procedures to speed up registration and simplify compliance for small taxpayers. Key highlights include Rule 9A Grant of Registration Electronically and Rule No. 14A.
Rule No. 9A Grant of Registration Electronically:
The system bypasses officer verification and automatically grants registration electronically within three working days.
The GSTN’s automated risk-assessment engine analyses the application against its risk parameters.
The applicant is determined to be low-risk i.e., clean compliance history, valid credentials, no association with previously fraudulent entities.
Key Highlights of Rule No. 14A:
The (Fourth Amendment) Rules also insert a new Rule 14A after Rule 14, titled “Option for taxpayers having monthly output tax liability below threshold limit.” This is an innovative, optional pathway aimed at lowering entry barriers for micro-enterprises, freelance service providers, and other small taxpayers, encouraging their formalization.
Eligibility Criteria of Rule 14A:
Applicant Type: The option is available only to persons applying for normal registration under Rule 8.
Threshold Limit: Eligible taxpayers have a total monthly output tax liability (including CGST, SGST/UTGST, IGST, and compensation cess on supplies to registered persons) not exceeding ₹2,50,000 per month. Liability from B2C supplies is excluded from this calculation.
Aadhaar Authentication Requirement: Aadhaar authentication is mandatory for all applicants under Rule 14A, except those notified under Section 25(6D) of the GST Act. OTP-based or biometric-based Aadhaar authentication is required.
Restriction on Duplicate Registration: A person cannot obtain more than one registration in the same State or Union Territory under Rule 14A against the same PAN (Permanent Account Number).
Rule 14A Threshold Analysis – Implied Monthly B2B Turnover Limit
| GST Rate Applicable to B2B Supply | Maximum Monthly B2B Output Tax (Constant) | Implied Maximum Monthly B2B Turnover |
|---|---|---|
| 1.5% (For Polished Diamond) | 250000 | 1,66,66,666 |
| 3% for Precious Metal (i.e., Gold ornaments, Silver Ornaments, Platinum etc.) | 250000 | 83,33,333 |
| 5% | 250000 | 50,00,000 |
| 18% | 250000 | 13,88,889 |
| 40% | 250000 | 8,92,857 |
Withdrawal Provisions from Rule 14A Registration
Filing Application: Registered persons intending to withdraw must file Form GST REG-32, signed or verified through electronic verification code on the GST common portal.
Return Filing Requirements:
| Particulars | Minimum Return Filing Requirements |
|---|---|
| For applications filed before 1st April 2026 | Minimum three months of returns must be furnished |
| For applications filed on or after 1st April 2026 | Minimum one tax period of returns must be furnished |
All returns due from the effective date of registration till the date of withdrawal application must be submitted.
Condition for Withdrawal: Withdrawal applications are permitted only where no proceedings under Section 29 (registration cancellation proceedings) have been initiated against the registered person.
Post-Withdrawal Procedure: Upon approval of withdrawal, the registered person can furnish details of output tax liability exceeding the ₹2,50,000 limit from the first day of the succeeding month in which the order is issued.
Prohibition on Backdating: Registered persons cannot amend output tax liability details to exceed the ₹2,50,000 limit for periods prior to the first day of the succeeding month when the withdrawal order is issued.
Verification Process for Withdrawal Applications
Authentication Requirements: Aadhaar authentication of the Primary Authorized Signatory and one selected Promoter or Partner is mandatory.
Document Verification: Based on data analysis and risk parameters, original copies of documents uploaded with the original registration application are verified.
Timeline for Disposal: Orders allowing or rejecting withdrawal applications must be issued within the period specified under Rule 9 of the CGST Rules.
Processing Restrictions: Once a withdrawal application is filed under Form GST REG-32, no amendment or cancellation applications are permitted until the withdrawal application is disposed of.
Form Modifications and New Forms
| Form | Modification |
|---|---|
| GST REG-01 | Updated to include option for Rule 14A registration and Aadhaar authentication requirements. |
| GST REG-02 | Modified to reference Rule 14A in addition to Rule 8(5). |
| GST REG-03 | Updated to cover registration, amendment, cancellation, and withdrawal applications. |
| GST REG-04 | Modified to accommodate additional information requirements for withdrawal applications. |
| GST REG-05 | Updated to include rejection orders for withdrawal applications under Rule 14A. |
| GST REG-32 | New form for withdrawal applications from Rule 14A registration option. |
| GST REG-33 | New form for orders approving withdrawal from Rule 14A registration. |
Practical Implications
These amendments significantly enhance the ease of doing business for small taxpayers by enabling fully automated registration processing for low-risk applicants. The integration of AI-driven verification and Aadhaar-based authentication balances the facilitation of genuine taxpayers with measures to curb fraudulent registrations. The threshold of ₹2,50,000 monthly output tax liability provides a practical cutoff for small businesses to benefit from simplified compliance procedures while maintaining adequate safeguards through mandatory Aadhaar verification.
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