Advisory on the Introduction of Simplified GST Registration Scheme

Date: November 1, 2025

To improve ease of doing business and streamline registration procedures for small taxpayers, a Simplified GST Registration Scheme has been launched in accordance with Rule 14A of the CGST Rules, 2017. The initiative seeks to minimize procedural complexity and help small businesses comply efficiently under GST.

Under this new rule, a taxpayer who, based on self-assessment, expects their total monthly output tax liability (covering CGST, SGST/UTGST, IGST, and Compensation Cess) on the supply of goods or services, or both, to registered persons not to exceed ₹2.5 lakh may choose registration under the simplified scheme.

It is further clarified that a person already registered under this rule in any State or Union Territory cannot obtain another registration under the same PAN within that State or UT.

Features Now Available on the GST Portal

• While applying for registration through FORM GST REG-01, applicants should enable the option “Yes” for Registration under Rule 14A.
  
  
• Aadhaar authentication is compulsory for both the Primary Authorized Signatory and at least one Promoter or Partner.
  
  
• Upon successful Aadhaar verification, registration will be issued electronically within three working days from the date the Application Reference Number (ARN) is generated.

Procedure for Withdrawal from the Scheme

Taxpayers registered under this simplified route can later opt out of the scheme. To do so, the following compliance conditions must be met:

• All pending returns from the effective registration date until the withdrawal application date must be filed.
  
  
• Depending on the timeline:
  
  
  • Before April 1, 2026: Returns for at least three months must be filed.
    
    
  • On or after April 1, 2026: Returns for at least one tax period must be filed.
    
• There should be no pending application for amendment or cancellation of registration obtained under Rule 14A.
  
  
• There should be no active or pending proceedings under Section 29 relating to cancellation of such registration.

Conclusion

The Simplified GST Registration Scheme represents a key reform in easing GST compliance for small businesses. By enabling quicker, Aadhaar-verified electronic registration and clear withdrawal provisions, the scheme encourages voluntary participation in the GST framework and supports India’s drive toward a more transparent, digital tax system.