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01.11.2025: Amendment to GST Rules – Insertion of New Rule 14A and 9A; Optional Aadhaar-based Registration and Grant of Registration Based on Data Analysis and Risk Parameters: CBIC Notification

GST

The CBIC has issued a Notification No. 18/2025–Central Tax dated 31.10.2025, to introduce a new mechanism under the CGST Rules, 2017 to facilitate Aadhaar-based registration for certain categories of persons. The newly inserted Rule 14A provides introduces an optional simplified registration mechanism for small taxpayers whose total monthly output tax liability does not exceed ₹2.5 lakh. This amendment seeks to strengthen the authenticity of registrations and streamline the withdrawal process, aligning it with risk-based verification parameters. Also, CBIC has inserted a new Rule 9A, to introduce risk-based electronic grant of registration, leveraging data analytics and portal-driven identification mechanisms.

The Changes has been summarized as under

Rule No./ FORM No.  Particulars Impact
Newly inserted 9A  Grant of registration electronically. Rule 9A applies to applicants seeking registration under Rule 8 (Normal taxpayer registration); Rule 12 (Registration for persons required to deduct or collect tax at source (TDS/TCS); Rule 17 (Registration for non-resident taxable persons).

The GST portal will use data analysis and risk parameters to identify low-risk applicants eligible for automated approval. Registration must be granted within three working days from the date of submission of the application.
Newly Inserted 9B  Optional Electronic Registration for Small Taxpayers with Monthly Output Tax Liability Below ₹2.5 Lakh Rule 14A introduces an optional simplified registration mechanism for small taxpayers whose total monthly output tax liability does not exceed ₹2.5 lakh. The rule enables electronic, Aadhaar-based registration to be granted within three working days. 

Key pointers

  • Applicable to persons whose total monthly output tax liability (Central, State/UT, IGST & cess combined) does not exceed ₹2.5 lakh. Applies only to supplies made to registered persons (B2B transactions)
  • Aadhaar authentication is compulsory (except for those notified under Section 25(6D)). Without Aadhaar authentication, registration under this rule is not permitted.
  • Only one registration per State/UT per PAN is allowed under this rule.
  • On successful Aadhaar verification, registration is granted electronically within 3 working days from application submission.
  • Taxpayer may opt out through Form GST REG-32, after filing minimum required returns. Proper officer issues order in Form GST REG-33 (approval) or REG-05 (rejection).
  • Taxpayer must maintain output tax liability within ₹2.5 lakh/month while under this scheme. Exceeding the limit requires withdrawal; higher liability can be declared from the following month.
  • Based on data analytics and risk parameters available on the GST portal. Biometric and document verification provisions (Rule 8(4A)) apply for withdrawal cases.
  • Cannot file withdrawal if proceedings under Section 29 (cancellation of registration) are pending. Application to withdraw rejected if cancellation proceedings are active.
FORM GST REG-01 Amendment to Form GST REG-01 – Incorporation of Option under Rule 14A
FORM GST REG-02 Amendment to Form GST REG-02 Reference to Rule 14A. This ensures that REG-02 acknowledges applications submitted under Rule 14A in addition to the existing Rule 8(5) applications.
FORM GST REG-03 Amendment to Form GST REG-03 Incorporating Rule 14A – formalizing the process for issuing notices for additional information or clarification to applicants under the small-taxpayer optional registration scheme.
FORM GST REG-04 Amendment to Form GST REG-04 Incorporating Rule 14A 
FORM GST REG-05 Amendments to Forms GST REG-05 Incorporating Rule 14A 
Newly inserted FORM GST REG-32 Application for Withdrawal Comprehensive framework for rejection and withdrawal applications for small taxpayers.
FORM GST REG-33 Order of withdrawal from option availed under sub-rule (1) of rule 14A Formalizes acceptance of withdrawal from Rule 14A registration option.

To read the complete Notification https://taxo.online/wp-content/uploads/2025/11/gst-ct-18-2025.pdf

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