CBIC Implements Technology-Driven GST Registration System From 1st November 2025 — Automatic Electronic Registration Within 3 Working Days and New Rules 9A & 14A notifies for Small Businesses Introduced

The CBIC has issued Notification No. 18/2025 – Central Tax, dated October 31, 2025, notifies the Central Goods and Services Tax (Fourth Amendment) Rules, 2025 to introduce a faster, technology-enabled, and taxpayer-friendly GST registration process within three working days. These amendments will come into effect from 1st November 2025.

Rule 1: Short Title and Commencement:

• (1) These rules may be called the Central Goods and Services Tax (Fourth Amendment) Rules, 2025. This provides the official title of the amending rules, indicating that these are the fourth set of amendments in 2025.
• (2) These rules shall come into force with effect from 1st day of November, 2025. This specifies the effective date of the amendments, which is just one day after the notification’s issuance. This means businesses need to be aware of and comply with these changes very quickly.

Rule 2: Insertion of New Rule 9A – Grant of Registration Electronically:

• This is a crucial new rule inserted after existing Rule 9, which deals with the verification and grant of registration.
• “9A. Grant of registration electronically. – Notwithstanding anything contained in rule 9, any person who has applied for registration under rule 8 or rule 12 or rule 17, shall, upon identification on the common portal based on data analysis and risk parameters, be granted registration electronically by the common portal, within three working days from the date of submission of application.”
  • “Notwithstanding anything contained in rule 9”: This phrase is highly significant. It implies that Rule 9A provides an alternative, faster track for registration that can bypass some of the existing procedures in Rule 9.
  • Applicants covered: Applies to those applying under Rule 8 (normal registration), Rule 12 (TDS/TCS deductors), or Rule 17 (non-resident taxable persons/casual taxable persons).
  • Mechanism: Registration will be granted electronically by the common portal. This signals a move towards greater automation and reduced human intervention for eligible cases.
  • Eligibility Criteria: The electronic grant is based on “data analysis and risk parameters”. This means the system will evaluate the applicant’s profile for potential risks or inconsistencies using predefined data analytics. This is a step towards risk-based assessment and intelligent processing.
  • Timeline: If eligible, registration is granted within three working days from the application submission date. This is a significant reduction in the typical processing time and aims to facilitate ease of doing business.

Rule 3: Amendment in Sub-rule (1) of Rule 10:

• “In the said rules, in sub-rule (1) of rule 10, after the words and figure “under rule 9,”, the words, letters and figures “rule 9A and rule 14A,” shall be inserted.”
  • Rule 10 generally deals with the certificate of registration. By inserting “rule 9A and rule 14A,” after “rule 9,” it implies that the provisions of Rule 10 (e.g., issuance of registration certificate) will now also apply to registrations granted under the new electronic process (Rule 9A) and the new option for taxpayers with low liability (Rule 14A).

Rule 4: Insertion of New Rule 14A – Option for Taxpayers Having Monthly Output Tax Liability Below Threshold Limit:

• This introduces another major change, creating a special registration option for small taxpayers.
• “14A. Option for taxpayers having monthly output tax liability below threshold limit.” This clearly defines the target group for this rule.
• (1) Any person who has made application for registration under rule 8 and who determines that his total output tax liability on supply of goods or services or both made to registered persons on account of central tax and State tax or Union territory tax and integrated tax and compensation cess, does not exceed two lakh and fifty thousand rupees per month, shall have an option to get registration electronically, in accordance with the provisions of this rule.”
  • Applicant: Applies to those applying under Rule 8 (normal registration).
  • Eligibility: The key criterion is that the total output tax liability (CGST, SGST/UTGST, IGST, and Compensation Cess) on supplies made to registered persons should not exceed INR 2,50,000 per month. This is a specific threshold for opting into this scheme. It’s important to note it refers to supplies to registered persons, which might be aimed at B2B transactions primarily.
  • Benefit: Such eligible persons have an option to get registration electronically under this specific rule. This implies a potentially simpler or faster electronic process for these smaller B2B suppliers.
• (2) Any person, other than a person notified under sub-section (6D) of section 25, who has not opted for authentication of Aadhaar number, shall not be eligible for grant of registration in terms of this rule.”
  • Aadhaar Authentication Mandatory: This sub-rule makes Aadhaar authentication a prerequisite for this special electronic registration under Rule 14A, with an exception for persons notified under Section 25(6D) (usually government entities or PSUs). This reinforces the government’s push for Aadhaar-based verification to enhance identity security and reduce fraud.
• (3) Notwithstanding anything contained in rule 11, 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 Permanent Account Number.”
  • Single Registration: Rule 11 typically allows for multiple registrations within a State/UT for different business verticals. However, this sub-rule restricts taxpayers registered under Rule 14A to only one registration per PAN within the same State or Union Territory. This prevents potential misuse or fragmentation of business for tax evasion under this specific simplified scheme.
• (4) Upon successful authentication of Aadhaar number, the applicant referred to in sub-rule (1) shall be granted registration electronically by the common portal, within three working days from the date of submission of application.”
  • Process and Timeline: Similar to Rule 9A, after successful Aadhaar authentication, registration will be granted electronically by the common portal within three working days. This reiterates the efficiency and automation intended for this category of taxpayers.
• (5) The registered person who intends to withdraw from the option availed under sub-rule (1), shall file an application, in FORM GST REG-32, duly signed or verified through electronic verification code on the common portal, either directly or through a Facilitation Centre notified by the Commissioner:
  • Withdrawal Process: This specifies the procedure for taxpayers to withdraw from the Rule 14A option. They must file FORM GST REG-32 (a new form introduced later in the notification) via the common portal, either directly or through a Facilitation Centre.
  • Verification: The application must be duly signed or verified through an Electronic Verification Code (EVC).
  • Provided that the registered person shall not be allowed to file such application unless he has furnished, – This proviso sets conditions for withdrawal:
    • (a) returns for a period of minimum three months, where such application is filed before 1st April, 2026; For early withdrawals (before April 1, 2026), at least three months of returns must have been filed.
    • (b) returns for a period of minimum one tax period, where such application is filed on or after 1st April, 2026; and For withdrawals on or after April 1, 2026, at least one tax period’s return must be filed. This suggests a potential relaxation in return filing requirements for withdrawal over time.
    • (c) all the returns due for the period from the effective date of registration till the date of application for withdrawal: This is a standard compliance requirement, ensuring all pending returns are filed before withdrawal.
  • Provided further that the registered person shall be allowed to file such application where no proceedings under section 29 have been initiated against such registered person. This second proviso adds another condition: withdrawal is not allowed if cancellation proceedings (under Section 29, which deals with cancellation of registration) have already been initiated against the taxpayer. This prevents taxpayers from avoiding cancellation by withdrawing.
• (6) Where there is any change in particulars furnished in FORM GST REG-01 by the person who has been granted registration under this rule, the said registered person shall get the particulars amended under rule 19 before filing an application for withdrawal under sub-rule (5).
  • Amendment before Withdrawal: If any details submitted in the initial registration application (FORM GST REG-01) change, the taxpayer must first amend these particulars under Rule 19 (which deals with amendments to registration) before applying for withdrawal from the Rule 14A option. This ensures accurate records before a change in status.
• (7) Based on data analysis and risk parameters on the common portal, the provisions of sub-rule (4A) of rule 8 relating to authentication of Aadhaar number or biometric-based Aadhaar authentication, taking photograph of the applicant along with verification of original copy of documents uploaded along with registration application in FORM GST REG-01, shall, so far as may be, apply to application for withdrawal filed under sub-rule (5).
  • Verification for Withdrawal: This sub-rule extends the stringent verification procedures (Aadhaar authentication, biometric authentication, photograph, document verification) outlined in Rule 8(4A) to the withdrawal application process under Rule 14A, if deemed necessary based on data analysis and risk parameters on the common portal. This is to ensure that withdrawals are not used to bypass compliance or for fraudulent purposes.
• (8) The provisions of sub-rules (5) and (6) of rule 8 relating to issuance of acknowledgment, shall, mutatis mutandis, apply to the application filed under sub-rule (5).
  • Acknowledgment: Sub-rules (5) and (6) of Rule 8 deal with the acknowledgment of registration applications. This applies those same provisions (with necessary changes) to the acknowledgment of withdrawal applications filed under Rule 14A(5), ensuring a proper record of receipt.
• (9) The application filed for withdrawal under sub-rule (5), shall be verified in accordance with the provisions of rule 9.”
  • Verification of Withdrawal Application: The withdrawal application itself will undergo verification as per the general provisions of Rule 9 (which covers verification of registration applications). This ensures a thorough check before allowing withdrawal.
• (10) Upon verification under sub-rule (9), the proper officer shall issue an order in FORM GST REG-33 allowing the application for withdrawal from the option availed under sub-rule (1) or order for rejection of application in FORM GST REG-05, within a period specified under rule 9, as the case may be, which shall be made available to the registered person on the common portal.”
  • Decision and Communication: After verification, the proper officer will issue an order: either FORM GST REG-33 (allowing withdrawal, a new form introduced later) or FORM GST REG-05 (rejecting the application, an existing form that is being amended).
  • Timeline: This decision must be made within the period specified under Rule 9.
  • Availability: The order will be made available to the registered person on the common portal.
• (11) The registered person who has received an order issued under sub-rule (10) 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 as referred to in sub-rule (1), from the first day of succeeding month in which the said order has been issued.”
  • Transition after Withdrawal: If withdrawal is allowed, from the first day of the succeeding month after the order, the taxpayer will be able to report output tax liability exceeding the INR 2.5 lakh threshold (mentioned in sub-rule 14A(1)). This clarifies that once out of the special scheme, the normal reporting limits apply.
• (12) A registered person to whom an order under sub-rule (10) has been issued, shall not amend the details furnished in respect of output tax liability so as to exceed the limit of the output tax liability specified in sub-rule (1) for the period prior to the first day of succeeding month in which the said order has been issued.”
  • No Retrospective Change: This prevents taxpayers from retrospectively altering their output tax liability details for the period before the withdrawal order to exceed the INR 2.5 lakh threshold. This safeguards against misuse of the low-threshold option.
• (13) Where proceedings for cancellation of registration have been initiated by the proper officer after the filing of withdrawal application and the said proceedings are pending, the withdrawal application under sub-rule (5) shall be rejected by the proper officer and the provisions in relation to approval of application on deemed basis under sub-rule (5) of rule 9, shall not be applicable in such case.”
  • Cancellation Over Withdrawal: This sub-rule clearly states that if cancellation proceedings (under Section 29) are initiated after a withdrawal application is filed and are still pending, the withdrawal application shall be rejected.
  • No Deemed Approval: Furthermore, the provision for “deemed approval” of applications under Rule 9(5) (where if no action is taken by the officer within a certain period, the application is deemed approved) will not apply in such cases. This ensures that serious issues leading to cancellation proceedings are addressed thoroughly, preventing a loophole where withdrawal could circumvent cancellation.

Rule 5: Amendments in FORM GST REG-01 (Application for Registration):

• (a) after the word, letters and figures “FORM GST REG-01″ and before the words “Application for Registration”, for the brackets, words and figures “[See rule 8(1)]”, the brackets, words, figures and letter “[See rules 8(1) and 14A]” shall be substituted;
  • This is a minor but important textual amendment. It updates the reference in FORM GST REG-01 to include Rule 14A, indicating that this form is now also used for applications under the new low-threshold option.
• (b) in Part-B, in the table, after serial number 4 and the entries relating thereto, the following serial numbers shall be inserted, namely: – “4.1 Option for registration under rule 14A YES ▢ NO ▢”
  • This inserts a new field (4.1) into Part-B of FORM GST REG-01. Applicants will now have to explicitly indicate whether they are opting for registration under Rule 14A by selecting “YES” or “NO”. This integrates the new option directly into the main registration form.
• (c) under the heading ‘Instructions for submission of Application for Registration’, after serial number 8, the following serial number shall be inserted, namely: – “8A. Any person opting for registration under rule 14A shall undergo OTP based authentication of Aadhaar number.”.
  • This adds a new instruction (8A) to FORM GST REG-01, explicitly stating that Aadhaar OTP-based authentication is mandatory for those opting for Rule 14A registration. This aligns with Rule 14A(2) and emphasizes the digital verification process.

Rule 6: Amendments in FORM GST REG-02:

• “In the said rules, in FORM GST REG-02, after the word, letters and figures “FORM GST REG-02″, for the brackets, words and figures “[See rule 8(5)]”, the brackets, words, figures and letter “[See rules 8(5) and 14A]” shall be substituted.”
  • Similar to Rule 5(a), this is a textual amendment to FORM GST REG-02 (acknowledgment of application) to include a reference to Rule 14A, confirming that this form also covers applications under the new rule.

Rule 7: Substitution of FORM GST REG-03 (Notice for Seeking Additional Information):

• This rule completely replaces the existing FORM GST REG-03.
• “FORM GST REG-03 [See rules 9(2), 19(2) and 14A] Notice for Seeking Additional Information / Clarification / Documents relating to Application for <<Registration/Amendment/Cancellation/Withdrawal>>”
  • Expanded Scope: The new FORM GST REG-03 now explicitly references Rule 14A (in addition to Rules 9(2) and 19(2)), meaning it can be used to seek clarification for applications made under the new low-threshold option.
  • Unified Notice: The title also clarifies that this form is a unified notice for seeking information related to Registration, Amendment, Cancellation, or Withdrawal applications. This streamlines the communication process from the department.
  • The form includes fields for Reference Number, Date, Applicant details, ARN, and reasons for dissatisfaction with the application. It also provides a date by which the reply is expected and indicates the consequence of no response (rejection).

Rule 8: Substitution of FORM GST REG-04 (Clarification/Additional Information/Document):

• This rule completely replaces the existing FORM GST REG-04.
• “FORM GST REG-04 [See rules 9(2), 19(3) and 14A] Clarification/additional information/document for <<Registration/Amendment/Cancellation/Withdrawal >>”
  • Expanded Scope: The new FORM GST REG-04, like REG-03, now explicitly references Rule 14A (in addition to Rules 9(2) and 19(3)), meaning it is the form for providing clarification/additional information related to applications under the new low-threshold option.
  • Unified Form: This is also a unified form for providing clarifications for Registration, Amendment, Cancellation, or Withdrawal applications.
  • It includes a detailed table with fields for Notice details, Application details, GSTIN, Name of Business, Trade name, Address, whether modification is required (Yes/No checkbox), Additional Information, and List of Documents uploaded.
  • Note: Importantly, it adds notes explaining that for new registration/amendment/withdrawal from Rule 14A, the original application will be editable if “Yes” is selected for item 7 (modification required).

Rule 9: Substitution of FORM GST REG-05 (Order of Rejection):

• This rule completely replaces the existing FORM GST REG-05.
• “FORM GST REG-05 [See rules 9(4), 19(4), 23(2)(b) and 14A] Order of Rejection of Application for <Registration / Amendment / Cancellation/ Withdrawal >”
  • Expanded Scope: The new FORM GST REG-05 now explicitly references Rule 14A (in addition to Rules 9(4), 19(4), 23(2)(b)), making it the official form for rejecting applications made under the new low-threshold option.
  • Unified Rejection Form: It serves as a unified rejection order for applications related to Registration, Amendment, Cancellation, or Withdrawal.
  • The form includes fields for Reference Number, Date, Applicant details, ARN, and reasons for rejection, including options for non-compliance with the Act or failure to reply to notices.

Rule 10: Insertion of New Form GST REG-32 (Application for Withdrawal):

• This rule inserts a brand new form, FORM GST REG-32, specifically for withdrawal applications from the Rule 14A option.
• “FORM GST REG-32 [See rule 14A (5)] Application for Withdrawal”
  • Purpose: This form is solely for taxpayers who want to withdraw from the special registration option under Rule 14A(5).
  • Key Fields: It requires details such as GSTIN, Legal name, Trade name, Address of Principal Place of business, confirmation of option for registration under Rule 14A (Yes/No), Aadhaar Authentication details (Primary Authorized Signatory and Promoter/Partner), and Reason for Withdrawal.
  • Reasons for Withdrawal: Two specific reasons are provided:
    • (i) Output tax liability in respect of supply made to registered person exceeds two lakh fifty thousand rupees per month. This is the primary reason for withdrawal, as the taxpayer has outgrown the scheme’s limit.
    • (ii) Other – Please specify. This provides flexibility for other valid reasons.
  • Verification: The form includes a verification declaration by the applicant, affirming their intent to withdraw and understanding of the rules.
  • Instructions for Submission: A detailed list of 9 instructions for submitting FORM GST REG-32 is provided:

1. 1. 1. “Option for registration under rule 14A” field (YES) will be disabled on the common portal.
      2. PAN verification with Income Tax database.
      3. Aadhaar Authentication of Primary Authorized Signatory and one selected Promoter/Partner is mandatory.
      4. Mandatory furnishing of all pending returns (minimum 3 months before April 1, 2026, or 1 tax period on/after April 1, 2026) before applying for withdrawal.
      5. No pending amendment application at the time of filing REG-32.
      6. No amendment application allowed after REG-32 filing until disposal.
      7. ARN generated only after successful OTP/biometric Aadhaar authentication and document verification.
      8. Cancellation application not allowed once REG-32 is filed until disposal.
      9. Withdrawal not allowed if Section 29 cancellation proceedings are initiated.

Rule 11: Insertion of New Form GST REG-33 (Order of Withdrawal):

• This rule inserts a brand new form, FORM GST REG-33, to formally communicate the approval of a withdrawal application from Rule 14A.
• “FORM GST REG-33 [See rule 14A (10)] Order of withdrawal from option availed under sub-rule (1) of rule 14A”
  • Purpose: This form is issued by the Proper Officer to inform the taxpayer that their application for withdrawal from the Rule 14A option has been accepted.
  • Contents: It includes Reference Number, Date, Applicant details (Name, Address, GSTIN), Application Reference No. (ARN), and a statement confirming the acceptance of the withdrawal application based on Rule 14A(11).
  • Consequence: The amended certificate of registration will be available on the taxpayer’s dashboard for download.

Note at the end of the Notification:

• This “Note” section provides historical context, mentioning the initial publication of the principal GST rules and all subsequent amendments, including the last one (No. 13/2025–Central Tax dated September 17, 2025). This helps in tracking the legislative history of the GST rules.

Overall Analysis and Impact:

This notification represents a significant push towards digitalization, automation, and risk-based assessment in GST registration processes.

1. Ease of Doing Business for Small Taxpayers (Rule 14A): The most impactful change is the introduction of Rule 14A. It offers a simplified, electronic registration process for businesses with monthly output tax liability to registered persons not exceeding INR 2.5 lakhs. This aims to reduce compliance burden and accelerate registration for a large segment of small B2B suppliers.
2. Faster Registrations (Rule 9A & 14A): The commitment to granting electronic registration within “three working days” under both Rule 9A and Rule 14A is a major step towards reducing delays and promoting business commencement.
3. Enhanced Verification and Fraud Prevention: The emphasis on Aadhaar authentication (OTP or biometric) for Rule 14A and its extension to withdrawal applications, along with data analysis and risk parameters, indicates a strong focus on preventing fraudulent registrations and misuse of simplified schemes.
4. Structured Withdrawal Process: The detailed procedure for withdrawal under Rule 14A(5) with FORM GST REG-32, including conditions for return filing and prohibition during cancellation proceedings, provides clarity and control over the transition out of the special scheme.
5. Streamlined Forms: The amendments and substitutions of forms (REG-01, REG-02, REG-03, REG-04, REG-05) to include Rule 14A references, and the introduction of new forms (REG-32, REG-33), ensure that all departmental communications and taxpayer applications are updated to reflect the new provisions. The unification of REG-03, REG-04, and REG-05 for multiple application types (Registration, Amendment, Cancellation, Withdrawal) will likely simplify administrative processes.
6. Risk-Based Approach: The reliance on “data analysis and risk parameters” for electronic registration (Rule 9A) and for applying stringent verification during withdrawal (Rule 14A(7)) shows a modern, intelligent approach to tax administration, focusing resources where risks are higher.
7. Compliance Focus: The conditions for withdrawal (e.g., filing all due returns, no pending cancellation proceedings) underscore the department’s commitment to maintaining taxpayer compliance even during changes in registration status.

In conclusion, this notification is a forward-looking measure by the GST authorities to leverage technology for more efficient, transparent, and user-friendly tax administration, particularly benefiting smaller businesses while simultaneously strengthening safeguards against non-compliance.

The Complete Notification along with the Forms can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/11/gst-ct-18-2025.pdf