The CBIC has introduced procedural improvements in GST registration through the CGST (Fourth Amendment) Rules, 2025, notified on 31st October 2025. These rules are applicable from 1st November 2025. These amendments provide optional registration scheme for taxpayers with low monthly output tax liability to simplify compliance and offer relief to small taxpayers.
New Rule 9A
Rule 9A is newly inserted after Rule 9 of the CGST Rules, 2017.
This new rule mandates that any person applying for GST registration under Rules 8 (new registration), 12 (Amendment of registration), or 17 (Cancellation of registration) shall be granted registration electronically by the common portal within 3 working days of the application submission.
This electronic registration is based on identification through data analysis and risk parameters, enabling automatic and quicker registration without manual intervention unless flagged for verification.
New Rule 14A
Important feature of the amendments is the introduction of Rule 14A, which allows an optional registration scheme specifically for taxpayers whose monthly output tax liability on supplies to registered persons does not exceed Rs. 2,50,000.
Eligibility and Conditions
- The option is available for persons applying for registration under Rule 8 who determine that their monthly output tax liability does not exceed Rs. 2.5 lakh.
- Aadhaar-based authentication is mandatory for availing this option.
- Taxpayers opting for this scheme cannot obtain multiple registrations under this option within the same State or Union Territory against the same PAN.
- Persons failing Aadhaar authentication or notified under certain provisions related to non-compliance are ineligible.
Withdrawal from the Option
We may opt to withdraw from this option if output tax liability exceeds Rs. 2.5 lakh in a month or other specified reasons by filing an application in FORM GST REG-32.
The withdrawal application involves authentication, verification, and compliance with pending return filings, and is subject to approval or rejection within specified timelines by the proper officer.
Key conditions to be satisfied before filing withdrawal application:
- If withdrawal application is filed before 1st April 2026, the taxpayer must have furnished returns for a minimum period of three months.
- If withdrawal application is filed on or after 1st April 2026, returns must be furnished for at least one tax period.
- All returns due from the effective date of registration till the date of filing of the withdrawal application must be furnished.
- Withdrawal application cannot be filed if any proceedings under section 29 (cancellation of registration) have been initiated against the taxpayer.
- Where there is any change in particulars furnished initially in FORM GST REG-01, the taxpayer must get those particulars amended under Rule 19 before applying for withdrawal.
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