Simplified GST Registration Scheme (Rule 14A) Advisory

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Simplified GST Registration Scheme (Rule 14A) Advisory

Reducing Compliance Burden for Small Taxpayers (Nov 1st, 2025).

The Government of India has introduced the Simplified GST Registration Scheme in pursuance of Rule 14A of the Central Goods and Services Tax (CGST) Rules, 2017. This scheme aims to reduce the compliance burden and enhance the ease of doing business for small taxpayers, as per the advisory dated November 1st, 2025.

Part 1: Eligibility and Threshold Limit (Rule 14A)

Conditions for Registration:

  • Threshold: Any person is eligible if their total output tax liability on the supply of goods or services, or both, to registered persons will not exceed Rs. 2.5 lakh per month.
  • Tax Components: This Rs. 2.5 lakh limit includes CGST, SGST/UTGST, IGST, and Compensation Cess.
  • Restriction: A person registered under this rule in a State or Union Territory shall not be eligible to obtain another registration in the same State or Union Territory under this rule against the same PAN.

Part 2: Key Features Implemented on the GST Portal

Applicants for this scheme must follow these portal instructions during registration in FORM GST REG-01:

  • Option Selection: Applicants must select "Yes" under the "Option for Registration under Rule 14A."
  • Authentication: Aadhaar authentication is mandatory for the Primary Authorized Signatory and at least one Promoter/Partner.
  • Approval: Registration shall be granted electronically within three working days from the date of ARN generation, subject to successful Aadhaar authentication.

Part 3: Conditions for Withdrawal from the Scheme

Taxpayers intending to withdraw must note the following conditions that must be met before filing the withdrawal application:

Mandatory Compliance Checklist:

  • Return Filing: All returns due from the effective date of registration up to the date of filing the withdrawal application must be filed.
  • Minimum Period: The taxpayer must have filed returns for a period of minimum three months, if applying for withdrawal before 1st April 2026, or for a period of minimum one tax period, if applying for withdrawal on or after 1st April 2026.
  • Pending Applications: No amendment or cancellation application for registration availed under rule 14A should be pending.
  • Pending Proceedings: No proceedings under Section 29 (cancellation of registration) for registration availed under rule 14A should be initiated or pending.

Professional Insight: Key Takeaway 💡

This scheme offers substantial relief, but requires strict compliance discipline. Remember, the eligibility is tied to your monthly output tax liability not exceeding Rs. 2.5 lakh. Furthermore, maintaining a clean record—no pending returns or litigation under Section 29—is essential, especially if you foresee needing to withdraw from the scheme later.

Source: Advisory for Simplified GST Registration Scheme, GSTN, Dated: November 1st, 2025.

Statutory Reference: Rule 14A and Section 29 CGST.

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