From 1 November 2025, the government has introduced a new Rule 14A under the CGST Rules, 2017, to simplify GST registration for small and low-risk taxpayers. This reform allows eligible applicants to obtain GST registration System within three working days through an Aadhaar-based electronic process, making business entry smoother and faster.
Key Highlights of Rule 14A : Objective, Eligibility & Withdrawal
1. Objective: Rule 14A aims to make registration faster for businesses with low tax liability and minimal compliance risk. It promotes ease of doing business for start-ups, MSMEs, and small service providers.
2. Eligibility:
- Applicant’s monthly output tax liability on supplies made to registered persons (B2B) must not exceed ₹ 2.5 lakh.
- Aadhaar authentication is mandatory for the authorised signatory and one promoter/partner.
- Only one registration under Rule 14A per State or UT per PAN is allowed.
- Scheme is optional — taxpayers may choose between the normal or simplified route.
3. Procedure:
- Apply through Form GST REG-01 and select “Yes” under “Option for Rule 14A registration.”
- Complete Aadhaar authentication and upload standard business documents.
- On successful verification and risk clearance, registration is granted electronically within 3 working days.
4. Conditions
- The ₹ 2.5 lakh monthly output-tax limit must not be crossed while enrolled.
- All GST returns must be filed regularly.
- Non-compliance or false declaration can lead to cancellation.
5. Withdrawal / Exit
- If tax liability exceeds ₹ 2.5 lakh, file Form REG-32 to withdraw.
- At least 3 months’ returns (before Apr 2026) or 1 return (after Apr 2026) must be filed before withdrawal.
- The officer issues Form REG-33 approving withdrawal, effective from the next month.
6. Linked Provisions
- Rule 14A(2): Specifies Aadhaar authentication and risk-based electronic approval.
- Rule 14A(3): Covers post-approval conditions, verification, and authority to revoke registration if eligibility changes.
Conclusion
Rule 14A marks a major step toward a faster, digital, and risk-based GST registration system. It benefits small businesses by reducing procedural delays while maintaining accountability through Aadhaar verification. Taxpayers must, however, monitor their monthly tax liability and ensure timely compliance to stay within the scheme’s limits.
FAQs
1. What is Rule 14A under GST?
Ans: Rule 14A provides a simplified, Aadhaar-based electronic registration system for small and low-risk taxpayers whose monthly output tax liability on B2B supplies does not exceed ₹ 2.5 lakh.
2. When did Rule 14A come into effect?
Ans: It came into effect on 1 November 2025 through Notification No. 18/2025-Central Tax.
3. Who is eligible to apply under Rule 14A?
Ans: Any person applying for GST registration whose output tax liability on supplies to registered persons (B2B) is ₹ 2.5 lakh per month or below, and who has completed mandatory Aadhaar authentication, can opt for this route.
4. Is Aadhaar authentication mandatory?
Ans: Yes. The primary authorised signatory and at least one promoter or partner must complete Aadhaar authentication to qualify.
5. How soon is registration granted under Rule 14A?
Ans: If all validations pass and the risk parameters are clear, the GSTIN is issued within three working days from submission of the application.
My self Anita Sahani. I have completed my B.Com from Purbanchal College Silapathar. I am working in Dev Library as a Content Manager. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Health, Finance, Biography, Quotes, Study Materials, and more.
