Dear Taxpayers,

In a move aimed at reducing compliance complexities and promoting ease of doing business, the Government of India has introduced the Simplified GST Registration Scheme under Rule 14A of the Central Goods and Services Tax (CGST) Rules, 2017.
This initiative, effective from November 1, 2025, is specifically designed for small taxpayers whose monthly GST liability does not exceed ₹2.5 lakh.

Purpose of the Simplified Scheme

The newly introduced Rule 14A empowers small taxpayers to opt for a simplified registration process, minimizing paperwork and expediting approval timelines. The goal is to make compliance seamless while ensuring that genuine businesses can start operations faster with fewer procedural delays.

If you are a taxpayer whose total output tax liability (including CGST, SGST/UTGST, IGST, and Compensation Cess) is below ₹2.5 lakh per month, you can now choose to register under this simplified scheme.

However, it’s important to note that taxpayers registered under this scheme cannot obtain another registration in the same State or Union Territory using the same PAN.

Key Features on the GST Portal

The GSTN (Goods and Services Tax Network) has made important updates on the GST portal to accommodate this new registration option. Here’s what taxpayers need to know when applying:

• Simplified Selection Option:
  While filling FORM GST REG-01, applicants must select “Yes” under the field labeled “Option for Registration under Rule 14A.”
• Mandatory Aadhaar Authentication:
  Aadhaar verification is compulsory for both the Primary Authorized Signatory and at least one Promoter/Partner of the entity.
• Faster Approval Process:
  Once the application is submitted and Aadhaar authentication is completed successfully, the registration certificate will be granted electronically within three working days from the date of generation of the Application Reference Number (ARN).

This process is designed to make GST registration faster, digital-first, and more transparent for small taxpayers.

Conditions for Withdrawal from the Scheme

If a taxpayer decides to opt out of the Simplified Registration Scheme later, the following conditions must be met:

1. All Pending Returns Must Be Filed:
   Every return from the effective date of registration up to the date of filing the withdrawal application must be submitted.
2. Minimum Filing Period Requirement:
   • If you are applying for withdrawal before April 1, 2026, you must have filed returns for at least three months.
   • If you are applying on or after April 1, 2026, you must have filed returns for at least one tax period.
3. No Pending Amendments or Cancellations:
   There should be no amendment or cancellation applications pending for the registration obtained under Rule 14A.
4. No Pending Proceedings:
   No proceedings under Section 29 (cancellation of registration) should be initiated or pending for the registration obtained under this scheme.

Why This Change Matters for Small Businesses

This simplified registration process represents a significant step toward reducing the compliance burden for small traders, startups, and service providers in India.
Previously, many small entities hesitated to register under GST due to procedural hurdles or delayed approval timelines. Now, with the 3-day registration window and Aadhaar-based authentication, GST registration is both quicker and more reliable.

It also promotes the government’s Digital India vision by enabling end-to-end electronic processing — from application to approval.

How Lex N Tax Associates Can Help You

At Lex N Tax Associates, we specialize in simplifying tax procedures for businesses of all sizes. Our team of GST professionals can help you:

• Assess whether your business qualifies for the Simplified GST Registration Scheme.
• Complete your FORM GST REG-01 application with the correct documentation.
• Ensure error-free Aadhaar authentication for seamless approval within the stipulated three working days.
• Handle return filing and withdrawal requests if you wish to opt out later.
• Provide ongoing GST compliance support to help your business remain tax-efficient under the new rule.

Our focus is to make your transition under Rule 14A smooth, compliant, and time-saving, allowing you to focus on your business operations while we handle the technicalities.

Final Advisory

All eligible small taxpayers are advised to carefully evaluate the Simplified GST Registration Scheme before opting in.
The scheme offers flexibility, faster processing, and reduced compliance, making it an excellent opportunity for emerging businesses and MSMEs in India — especially those operating in Delhi and other metro regions.

Ensure that all mandatory Aadhaar verifications and documentation are completed accurately to avoid delays in approval.

For expert assistance, consider consulting professionals familiar with the latest GSTN updates and registration protocols — this can save you valuable time and prevent compliance errors.

Thank You,
Team GSTN

For further assistance with registration or compliance under the Simplified GST Registration Scheme, contact trusted tax professionals like Lex N Tax Associates for personalized guidance.