Introduction
To ease the compliance burden on small taxpayers and encourage ease of doing business, the Government has introduced a Simplified GST Registration Scheme under Rule 14A of the CGST Rules, 2017. This new framework is designed for businesses whose monthly output tax liability is relatively low, enabling them to benefit from a faster registration process, reduced documentation, and greater operational flexibility.
The advisory issued on 1st November 2025 outlines key eligibility conditions, procedural steps, and important points for taxpayers who may later wish to withdraw from this scheme. Below is the full text of the advisory followed by a simplified summary and key takeaways.
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Bare Advisory Text
Advisory for Simplified GST Registration Scheme Nov 1st, 2025
Dear Taxpayers,
In pursuance of Rule 14A of the Central Goods and Services Tax (CGST) Rules, 2017, a Simplified GST Registration Scheme has been introduced 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.” • 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.
Taxpayers opting for registration under Rule 14A are advised to take note of the following conditions, in case they intend to withdraw from the Scheme at a later stage:
• All returns due from the effective date of registration up to the date of filing the withdrawal application must be filed. • The taxpayer must have filed: (a) Returns for a period of minimum three months, if applying for withdrawal before 1st April 2026, or (b) Returns for a period of minimum one tax period, if applying for withdrawal on or after 1st April 2026. • No amendment or cancellation application for registration availed under rule 14A should be pending. • No proceedings under Section 29 (cancellation of registration) for registration availed under rule 14A should be initiated or pending.
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Key Points Explained
1. Eligibility Based on Output Tax Liability
Businesses whose monthly output tax liability does not exceed ₹2.5 lakh can voluntarily choose this simplified registration route. This helps small suppliers and service providers avoid extensive processing delays.
2. Single Registration Restriction
A taxpayer can avail only one registration under Rule 14A per State/UT per PAN. This prevents duplication and ensures transparency.
3. Simplified Online Application
While filing FORM GST REG-01, taxpayers must opt into the scheme by choosing “Yes” under Rule 14A option. This ensures the application is processed under the simplified workflow.
4. Mandatory Aadhaar Authentication
To curb fraudulent registrations and expedite approvals:
· The Primary Authorized Signatory, and
· At least one Promoter/Partner must complete Aadhaar authentication.
5. Faster Registration Approval
Once the application is submitted and Aadhaar is successfully authenticated, the GST registration will be granted within 3 working days, speeding up market entry for small businesses.
6. Conditions for Withdrawal from the Scheme
Taxpayers may later opt out, but only after fulfilling the following:
· All pending returns from the date of registration must be filed.
· Minimum return filing requirements:
o 3 months of returns if withdrawing before 1 April 2026.
o 1 tax period return if withdrawing on or after 1 April 2026.
· No pending amendment or cancellation application.
· No pending or ongoing Section 29 cancellation proceedings.
These conditions ensure taxpayers maintain compliance before exiting the scheme.
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Conclusion
The Simplified GST Registration Scheme under Rule 14A marks a significant step towards reducing compliance complexities for small businesses in India. By offering quicker approvals, mandatory Aadhaar-based verification, and straightforward eligibility criteria, the government aims to promote ease of business operations while maintaining regulatory safeguards.
Small taxpayers who meet the output tax liability threshold should consider this scheme as a convenient gateway into the GST ecosystem. However, they must carefully adhere to the return-filing and compliance conditions, especially if planning to withdraw from the scheme in the future.
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