The Simplified GST Registration Scheme, introduced under Rule 14A of the Central Goods and Services Tax (CGST) Rules, 2017, is a major step toward reducing compliance requirements and improving the ease of doing business for small taxpayers across India. Effective from November 1, 2025, this scheme offers a streamlined registration process for individuals and businesses whose monthly output tax liability remains below the prescribed threshold. This advisory aims to help taxpayers understand eligibility, application procedures, benefits, and withdrawal conditions under the new framework.
Understanding the Purpose of the Scheme
The Simplified GST Registration Scheme was conceptualized to support small businesses that often struggle with the complexities of GST compliance. By offering an easier entry route, the government intends to encourage voluntary registration, improve compliance rates, and reduce bureaucratic hurdles. The scheme is particularly beneficial for small traders, service providers, and micro-businesses that operate with relatively low tax liabilities.
Under Rule 14A of the CGST Rules, any taxpayer who, based on self-assessment, believes that their total output tax liability on goods or services supplied to registered persons will not exceed Rs. 2.5 lakh per month, is eligible to register under this simplified mechanism. This amount includes CGST, SGST/UTGST, IGST, and Compensation Cess. However, the rule also includes a safeguard—taxpayers cannot obtain more than one registration under the same PAN in the same State or Union Territory through this scheme.
Key Features Introduced on the GST Portal
The GST portal has implemented several system-based enhancements to ensure a smooth registration experience under the Simplified GST Registration Scheme. These include:
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Dedicated Option in REG-01:
While filing the registration application in FORM GST REG-01, applicants must choose “Yes” under the section titled Option for Registration under Rule 14A. This ensures that their application is processed through the simplified channel. -
Mandatory Aadhaar Authentication:
To strengthen compliance and security, Aadhaar authentication has been made compulsory for the Primary Authorized Signatory and at least one Promoter or Partner. This measure helps reduce fraudulent registrations and ensures the genuineness of applicants. -
Faster Electronic Registration:
Upon successful Aadhaar authentication, registration under Rule 14A will be granted electronically within three working days from the generation of the Application Reference Number (ARN). This significantly reduces the waiting time compared to the regular registration process.
These features together make the registration process faster, more secure, and less burdensome for small taxpayers.
Conditions for Withdrawing from the Scheme
A taxpayer registered under the Simplified GST Registration Scheme may later decide to withdraw based on business growth, change in turnover, or operational needs. However, specific conditions must be met:
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Completion of All Pending Returns:
All GST returns due from the effective date of registration until the date of submission of the withdrawal application must be filed, leaving no return pending. -
Minimum Filing Requirement:
Depending on the withdrawal date, the taxpayer must have filed:-
At least three months of returns if withdrawing before April 1, 2026, OR
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At least one tax period return if withdrawing on or after April 1, 2026.
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No Pending Amendments or Cancellations:
Any request for amendment or cancellation related to registrations obtained under Rule 14A must be fully resolved before applying for withdrawal. -
No Proceedings Under Section 29:
There should be no ongoing or pending cancellation proceedings under Section 29 of the CGST Act for the registration obtained under Rule 14A.
These conditions ensure a clean compliance history and prevent misuse of the simplified entry route.
Why the Simplified GST Registration Scheme Matters for Small Taxpayers
The Simplified GST Registration Scheme offers multiple benefits for small businesses, including reduced documentation, quicker approvals, and lower compliance overheads. It empowers small taxpayers to integrate seamlessly into the national tax system while maintaining operational flexibility. Moreover, the system-driven checks and mandatory Aadhaar authentication help maintain transparency and safeguard the GST framework from potential misuse.
The Simplified GST Registration Scheme marks an important advancement in India’s indirect tax ecosystem. By easing entry barriers and accelerating registration timelines, the government strengthens its commitment toward a more business-friendly tax environment. Small taxpayers who meet the eligibility criteria should evaluate the benefits of opting into the scheme, keeping in mind both the features and withdrawal conditions. For those seeking a simplified, secure, and faster GST registration experience, this Simplified GST Registration Scheme represents a valuable opportunity.
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