In pursuance of Rule 14A of the Central Goods and Services Tax (CGST) Rules, 2017, a Simplified GST Registration Scheme has been introduced in Nov 2025 to reduce the compliance burden and enhance the ease of doing business for small taxpayers.
As per Rule 14A (Option for taxpayers having a monthly output tax liability below the prescribed threshold limit), any person who, on his own assessment, feels that his 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 (including CGST, SGST/UTGST, IGST, and Compensation Cess) shall be eligible to register under this scheme. However, 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.
Key Features Implemented on the GST Portal:
- While applying for registration in FORM GST REG-01, applicants should select “Yes” under the “Option for Registration under Rule 14A.” in Business detail page
- The remaining parts of FORM GST REG-01 are identical to those used for regular registration.
- Aadhaar authentication is mandatory for the Primary Authorized Signatory and at least one Promoter/Partner.
- Registration shall be granted electronically within three working days from the date of generation of the Application Reference Number (ARN), subject to successful Aadhaar authentication.
As this simplified GST registration comes with the condition of output tax liability not exceeding Rs.2.5 lakh per month, a facility to withdraw from registration under Rule 14A is provided for taxpayers who become ineligible to continue under the scheme i
s provided which is outlined below.
1. Who can apply for OPT OUT
- Active Taxpayers who are registered under Rule 14A, may apply for OPT OUT in accordance with
the provisions of the law.
2. How to apply on the GST Portal
- After login, navigate to:
Services -> Registration -> Application for Withdrawal from Rule 14A
The link will be visible only if the taxpayer is registered under Rule 14A and is active.
- The field “Option for registration under Rule 14A” will be selected as “No” by default.
- Enter “Reason for withdrawal from Rule 14A”.
- Proceed to Aadhaar Authentication tab for Aadhaar Authentication of Primary Authorised Signatory and one Promoter/Partner.
3. Key pre-conditions
- The registered person shall not be allowed to file Form GST REG-32 unless he has furnished,
(a) returns for a period of minimum three months, if Form GST REG-32 is filed before 1st April, 2026;
(b) returns for a period of minimum one tax period, if Form GST REG-32 is filed on or after 1st April, 2026;
(c) all the returns due for the period from the effective date of registration till the date of filing of Form GST REG-32.
(d) No amendment or cancellation application for registration availed under rule 14A should be pending.
(e) No proceedings under Section 29 (cancellation of registration) for registration availed under rule 14A should be initiated or pending.
4. Aadhaar authentication
- Based on data analysis, the taxpayer will have to undergo either OTP based Aadhaar authentication or Biometric based Aadhaar Authentication.
- Authentication is required for:
Primary Authorised Signatory (mandatory), and
At least one Promoter/Partner (where applicable).
- ARN will be generated only after successful Aadhaar authentication.
5. Important timelines
- Draft application must be submitted within 15 days of creation.
- Aadhaar/Biometric authentication must be completed within 15 days from submission.
- If authentication is not completed within the prescribed time, ARN will not be generated.
6. Restrictions during processing
- While Form GST REG-32 is pending after submission, Taxpayer cannot file Core amendment, noncore amendment and Self-cancellation application.
7. Post-Sanction of Opt-Out
- The taxpayer who has received an order in Form GST REG-33 allowing withdrawal shall be able to furnish the details of output tax liability on supply of goods or services or both made to registered persons, exceeding the output tax liability of Rs.2.5 lakhs, from the first day of succeeding month in which the said order has been issued.
📌 Conclusion
The Simplified GST Registration Scheme Rule 14A of the Central Goods and Services Tax (CGST) Rules, 2017 provides significant relief to small taxpayer from the time-consuming procedure involved in regular GST registration and enabling registration in 3 days.
Additionally, the scheme provides flexibility through an easy opt-out mechanism, allowing taxpayers to smoothly transition to the regular GST framework as their business grows and they become ineligible to continue under the simplified scheme.
Blog By : Mittal & Co.