1. Introduction
The Central Board of Indirect Taxes and Customs (CBIC) has introduced a new rule — Rule 14A — under the Central Goods and Services Tax (CGST) Rules, 2017 through Notification No. 18/2025 – Central Tax dated 31st October 2025. This rule, effective from 1st November 2025, provides a simplified registration option for taxpayers whose monthly output tax liability is below ₹2.5 lakh.
The purpose of this rule is to ease compliance for small taxpayers and allow faster electronic registration for low-risk businesses.
2. Objective of Rule 14A
Rule 14A aims to create a simplified registration mechanism for taxpayers who:
- Have low GST output tax liability,
- Primarily engage in B2B supplies, and
- Seek faster, electronic registration under GST.
In short, if your GST on outward supplies to registered persons does not exceed ₹2.5 lakh per month, you can choose registration under Rule 14A.
3. Eligibility Conditions
| Condition | Details |
|---|---|
| Output Tax Limit | Total monthly output tax (CGST + SGST + IGST + Cess) on B2B supplies ≤ ₹2.5 lakh. |
| Aadhaar Authentication | Mandatory for the applicant. |
| Single Registration | Only one registration allowed per State/UT under this rule for a single PAN. |
| Exclusion | Persons covered under Section 25(6D) (compulsory verification) are not eligible. |
4. Registration Process under Rule 14A
The registration process is entirely electronic and data-driven. Here’s how it works:
- Step 1: Apply in FORM GST REG-01 on GST Portal, selecting “Registration under Rule 14A”.
- Step 2: Complete Aadhaar authentication for the authorized signatory and one promoter/partner.
- Step 3: Once verified, registration is auto-granted within 3 working days.
- Step 4: Registration certificate is issued electronically.
5. Withdrawal from Rule 14A Option
If the taxpayer exceeds the ₹2.5 lakh limit or wishes to opt out, an application must be filed in FORM GST REG-32.
Conditions for Withdrawal:
- All pending GST returns must be filed.
- Minimum 3 months’ returns (if before 1 April 2026) or 1 month’s return (if after 1 April 2026) must be filed.
- No cancellation proceedings under Section 29 should be pending.
The proper officer issues an order in FORM GST REG-33 approving the withdrawal.
6. Key Restrictions under Rule 14A
| Particulars | Restriction |
|---|---|
| Multiple Registrations | Not allowed under the same PAN in one State/UT. |
| Amendments | Details in GST REG-01 must be amended before withdrawal. |
| Pending Proceedings | Withdrawal application not allowed if cancellation proceedings are initiated. |
| Output Tax Ceiling | Cannot revise output tax liability beyond ₹2.5 lakh before withdrawal month. |
7. Relevant Forms Introduced
| Form No. | Purpose |
|---|---|
| GST REG-01 | Application for Registration (includes Rule 14A option) |
| GST REG-32 | Application for Withdrawal from Rule 14A |
| GST REG-33 | Order for withdrawal approval |
| REG-03, REG-04, REG-05 | Amended to cover new Rule 14A provisions |
8. Example: How Rule 14A Works
Example:
Mr. Raj, a trader in Punjab, supplies goods only to registered dealers. His average monthly GST liability is ₹1.8 lakh. He applies for registration on 5th November 2025 and selects “Registration under Rule 14A”. Since his monthly liability is below ₹2.5 lakh and Aadhaar is verified, registration is auto-approved within 3 days.
Later, if his tax liability increases to ₹3 lakh per month, he must file FORM GST REG-32 to withdraw from Rule 14A.
9. Practical Impact
For Small Businesses
This is a major compliance relief for small traders, freelancers, and service providers making B2B supplies.
For GST Department
It enables faster, risk-based electronic registration and minimizes manual verification.
10. Summary Table: Rule 14A at a Glance
ParticularDetails Effective Date1st November 2025 Threshold Limit₹2.5 lakh per month (B2B output tax liability) ModeFully electronic AadhaarMandatory Withdrawal FormGST REG-32 Officer’s Order FormGST REG-33 ApplicabilityNew registrants opting for simplified registration Not Applicable ToPersons notified under Section 25(6D)
11. Conclusion
Rule 14A is a welcome reform that simplifies the GST registration process for small and low-turnover taxpayers. It ensures faster approvals, fewer physical verifications, and better compliance monitoring. Businesses with low monthly GST liability should explore this route for easy and hassle-free registration.
