Complete Guide to the New GST Registration Process under Rule 14A

1. Introduction

In my previous article, I explained in detail the New GST Registration Process introduced under the latest amendments. You can access that article by clicking on its title below.

Subsequent to the publication of that article, a new Circular has been issued by the Government providing further clarification and procedural guidance. This Circular must be read in conjunction with the earlier article to gain a complete understanding of the registration framework.

Readers are therefore advised to go through both articles together for a comprehensive view of the new process and the related departmental clarifications.

If, after reading both articles, you still have any questions or require professional assistance regarding GST registration or compliance, feel free to contact me at the details provided below.

The Central Goods and Services Tax (Fourth Amendment) Rules, 2025, notified through Notification No. 18/2025 - Central Tax dated 31 October 2025, effective 1 November 2025, introduced Rule 14A into the CGST Rules, 2017.This rule establishes a simplified, technology-driven registration process for low-risk suppliers whose monthly B2B output-tax liability does not exceed ₹ 2.5 lakh.It aims to promote speed, transparency, and risk-based governance in GST registration.

2. Key Benefits of Opting under Rule 14A

(1) Speed and Automation - Rule 14A(4)

• Registration is granted electronically within three working days once Aadhaar authentication succeeds.
• Manual officer intervention occurs only if risk parameters trigger a flag in the system.

(2) Reduced Compliance Burden

• Designed for low-volume B2B suppliers, eliminating unnecessary physical verification.
• Post-registration compliances remain under normal provisions; only the registration workflow is simplified.

(3) Aadhaar-Based Trust Framework - Rule 14A(2) read with Rule 8(4A)

• Requires OTP- or biometric-based Aadhaar authentication of the Primary Authorised Signatory and at least one Promoter/Partner.
• Enhances trust and quickens digital approval.

(4) Single Registration per State - Rule 14A(3)

• Permits only one Rule 14A registration per State or UT per PAN, preventing multiple low-risk registrations.

(5) Option to Exit Anytime - Rules 14A(5) to (12)

• If turnover exceeds ₹ 2.5 lakh/month, the taxpayer can withdraw by filing FORM GST REG-32.
• The officer issues an order in FORM GST REG-33, converting the same GSTIN to the normal registration category - no fresh GSTIN required.

(6) Data-Driven Transparency

• Automated, analytics-based evaluation ensures objectivity and reduces discretion, supporting ease of doing business.

3. Eligibility and Application Procedure for Registration

Step 1 - Determine Eligibility (Rule 14A(1) & (2))

Confirm that:

• Monthly B2B output-tax liability ≤ ₹ 2.5 lakh (inclusive of CGST + SGST/UTGST + IGST + Cess).
• Applicant is not covered under Section 25(6D) (special high-risk category).
• Aadhaar authentication (OTP / biometric) is completed successfully.

Step 2 - Online Application on GST Portal

Visit www.gst.gov.in → Services → Registration → New Registration, and file FORM GST REG-01:

1. Select Rule 14A (Simplified Registration) option.

2. Provide business details, PAN, mobile number, and email ID.

3. Complete OTP-based Aadhaar authentication (as per Instruction 8A to REG-01).

4. Submit electronically using EVC or DSC.

Step 3 - Acknowledgement and Clarifications

• Upon submission, the portal auto-generates FORM GST REG-02 (acknowledgement) [Rule 8(5), 14A].
• If the officer seeks additional information, REG-03 (Notice for Clarification) is issued → respond through REG-04 with supporting documents.

Step 4 - Automatic Grant of Registration

• Upon successful Aadhaar verification and passing risk parameters, registration is approved automatically within three working days.
• GSTIN is issued electronically under Rule 10(1) (read with Rules 9, 9A & 14A).

Step 5 - Start Operations

Once approved, the taxpayer may begin taxable supplies immediately and file returns under regular provisions.

4. Withdrawal from Rule 14A - When and How

(A) When Withdrawal is Required

If the monthly B2B output-tax liability exceeds ₹ 2.5 lakh, or the assessee fails to comply with any of the prescribed conditions under the GST law-particularly those specified under Rule 14A of the CGST Rules, the taxpayer shall mandatorily file an application for withdrawal from the simplified registration scheme in FORM GST REG-32, in accordance with Rule 14A(5).

(B) Step-wise Withdrawal Process

• Login: Navigate to Services → Registration → Application for Withdrawal under Rule 14A.
• Open REG-32: Details auto-filled → select reason (limit exceeded / other).
• Submit: Authenticate via OTP / DSC; system generates ARN.
• Verification: Officer verifies under Rule 9; may issue REG-03 → reply in REG-04.
• Order: Within Rule 9 timelines, Proper Officer issues either REG-33 (approval) or REG-05 (rejection).

(C) Effect of Withdrawal - Rules 14A(11) & (12)

• On approval via REG-33, the taxpayer may report output-tax > ₹ 2.5 lakh from the 1st day of the next month.
• Past returns cannot be amended retrospectively.
• Existing GSTIN continues - no new application required.

(D) Compliance Precautions

• Keep ARN and REG-33 order copy for audit records.
• Continue return filing until transition is confirmed.
• Avoid filing REG-16 (cancellation) during withdrawal processing.

5. Ineligibility / Disqualification under Rule 14A

A person cannot apply or continue under Rule 14A if any of the following apply:

1. Not Aadhaar-authenticated or notified under Section 25(6D) → ineligible [Rule 14A(2)].

2. Already holding Rule 14A registration in same State → barred [Rule 14A(3)].

3. Monthly B2B output-tax > ₹ 2.5 lakh → must exit via REG-32 [Rule 14A(1),(11),(12)].

4. Section 29 proceedings pending → cannot file or maintain application [Rule 14A(13)].

5. PAN / Aadhaar verification failure → portal rejection [Rule 8(4A)].

6. Returns not filed for minimum periods → barred [Rule 14A(5)].

7. Amendment application pending → must be disposed first [Rule 14A(6)].

6. Post-Withdrawal Status and Need for Fresh Registration

• No fresh registration is required after withdrawal [Rule 14A(10)].
• The same GSTIN continues under the normal category.
• Transition effective from the first day of the succeeding month [Rule 14A(11)].
• Prior returns remain unaltered [Rule 14A(12)].

Fresh GST registration is required only if:

• Voluntary closure and restart (Section 29); or
• Separate business vertical under Rule 11; or
• Change in constitution / new PAN (Section 22(3)).

7. Forms Introduced or Amended by Notification No. 18/2025