On 31st October 2025, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 18/2025 – Central Tax [G.S.R. 805(E)], introducing the Central Goods and Services Tax (Fourth Amendment) Rules, 2025. These amendments, effective from 1st November 2025, bring significant procedural changes aimed at simplifying and digitizing the GST registration process, especially for small taxpayers.
1. Faster, Electronic Grant of Registration (New Rule 9A)
A major step towards digitization, Rule 9A has been inserted to facilitate electronic grant of GST registration.
Now, any person applying for registration under Rule 8, Rule 12, or Rule 17 will be granted registration electronically through the GST common portal within three working days, based on data analysis and risk parameters.
What this means:
- No more long waiting periods for registration approvals.
- Data-driven risk assessment ensures only genuine applicants are auto-approved.
- Reduced human intervention minimizes errors and potential corruption.
This reform strengthens the government’s goal of building a trust-based, tech-enabled compliance ecosystem.
2. Introduction of Rule 14A: Option for Low-Tax-Liability Taxpayers
Another key feature of the amendment is the insertion of Rule 14A, which provides an option for taxpayers with a monthly output tax liability below ₹2.5 lakh to opt for a simplified registration process.
Eligibility Highlights:
- The applicant’s total monthly output tax (including CGST, SGST/UTGST, IGST, and cess) must not exceed ₹2,50,000.
- Aadhaar authentication is mandatory (except for persons notified under Section 25(6D) of the CGST Act).
- Applicants can only have one registration per State or UT under this rule.
Benefits for Small Businesses:
This rule is particularly beneficial for micro and small enterprises, easing their entry into the GST system while maintaining compliance. The process remains fully electronic and can be completed within three working days after Aadhaar verification.
3. Procedure for Withdrawal from the Option (Rule 14A(5)–(13))
Taxpayers registered under Rule 14A who later wish to withdraw from this option must file FORM GST REG-32. However, they must first:
- File all returns for at least three months (if before April 1, 2026) or one tax period (if after April 1, 2026).
- Ensure no cancellation proceedings are pending under Section 29.
The withdrawal process is also digital, involving verification and an order issued electronically in FORM GST REG-33 or REG-05 within the prescribed timeline.
Several GST registration forms have been updated to align with these new rules:
- FORM GST REG-01: Now includes an option for Rule 14A registration with Aadhaar-based OTP authentication.
- FORM GST REG-02: Updated references to include Rule 14A.
- FORM GST REG-03: Revised format to cover registration, amendment, cancellation, and withdrawal applications.
These updates ensure clarity, uniformity, and smoother processing of electronic applications.
5. Implications and Way Forward
The Fourth Amendment Rules, 2025, underscore the CBIC’s commitment to enhancing ease of doing business through automation and risk-based governance.
By integrating AI-driven verification and Aadhaar-based authentication, the government aims to strike a balance between facilitating genuine taxpayers and curbing fraudulent registrations.
For small taxpayers, the new Rule 14A offers flexibility and faster onboarding, reducing administrative burdens while keeping compliance simple.
In conclusion, CBIC Notification No. 18/2025 marks a decisive move toward a digitally empowered GST regime, aligning with the broader Digital India vision. Businesses, tax professionals, and startups should familiarize themselves with these changes to leverage the new simplified registration system and stay compliant with evolving GST regulations.