In a significant step towards further digitization and ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC) has notified the Central Goods and Services Tax (Fourth Amendment) Rules, 2025 through Notification No. 18/2025 – Central Tax, dated 31 October 2025.
These amendments, effective from 1 November 2025, introduce two major changes in the GST registration process—automatic electronic registration and a special option for small taxpayers with limited monthly output tax liability.
Let’s break down the key provisions in a simple and practical way.
Introduction of Rule 9A – Grant of Registration Electronically
The newly inserted Rule 9A is a major procedural reform. It enables electronic grant of GST registration through the common portal, using data analytics and risk parameters.
- Applicants under Rule 8, Rule 12, or Rule 17 can now receive registration automatically within three working days from the date of submission.
- The system will use data-driven risk assessment to verify the authenticity of applicants, aiming to speed up approvals while maintaining compliance integrity.
- This change effectively reduces human intervention, minimizes delays, and enhances transparency in the registration process.
Introduction of Rule 14A – Option for Small Taxpayers
Another major addition is Rule 14A, which provides a simplified registration route for taxpayers whose monthly output tax liability does not exceed ₹2.5 lakh.
This optional scheme is designed to ease compliance for small businesses, startups, and service providers.
Key features of Rule 14A:
- Eligibility:
- Applicants under Rule 8 can opt for electronic registration if their total monthly output tax liability (CGST + SGST/UTGST + IGST + Compensation Cess) is ≤ ₹2,50,000.
- Aadhaar authentication is mandatory unless exempted under Section 25(6D).
- Single Registration Restriction:
- A taxpayer cannot hold more than one registration under this rule within the same State or UT for the same PAN.
- Quick Approval:
- Upon successful Aadhaar authentication, registration shall be granted within three working days electronically.
- Withdrawal from the Scheme (Form GST REG-32):
- Taxpayers can choose to withdraw from this option by applying in Form GST REG-32.
- However, they must first file returns for at least:
- 3 months (if withdrawal before 1 April 2026), or
- 1 tax period (if withdrawal on or after 1 April 2026),
along with all pending returns up to the date of application.
- No Pending Proceedings:
- The withdrawal request will not be entertained if cancellation proceedings under Section 29 have already been initiated.
- Amendment of Details Before Withdrawal:
- If there are any changes in registration details (as per Form GST REG-01), these must be updated under Rule 19 before applying for withdrawal.
- Verification and Approval:
- The withdrawal application undergoes verification under Rule 9, and the officer may:
- Approve withdrawal via Form GST REG-33, or
- Reject via Form GST REG-05,
within the prescribed time limit.
- The withdrawal application undergoes verification under Rule 9, and the officer may:
- Post-Withdrawal Compliance:
- After approval, the taxpayer can show output tax liability exceeding ₹2.5 lakh starting from the first day of the following month.
- Amendments exceeding this threshold are not allowed for prior periods.
- Pending Cancellation Cases:
- If any cancellation proceeding is pending, the withdrawal application will be rejected, and deemed approval under Rule 9(5) will not apply.
Consequential Amendments in Rule 10
Rule 10(1) has been modified to include references to the new Rule 9A and Rule 14A.
This ensures that the GST registration certificate generation process also covers registrations granted under these new provisions.
Why This Matters
This amendment aligns with the government’s ongoing focus on:
- Simplification of compliance procedures,
- Leveraging technology for faster processing, and
- Supporting micro and small businesses with lighter compliance requirements.
By introducing electronic registration (Rule 9A) and small taxpayer registration option (Rule 14A), CBIC aims to:
- Cut down manual delays,
- Reduce officer-level discretion, and
- Make the GST system more efficient, risk-based, and taxpayer-friendly.
Effective Date
All these changes come into force from 1 November 2025.
In summary, Notification No. 18/2025 – Central Tax marks a significant reform in GST registration, combining automation with inclusivity. Businesses with lower turnover and limited tax liability will now find it easier and faster to get registered and operate under the GST regime.