Simplified GST Registration Scheme: Hassle-free Registration for Small Business Taxpayers

In exercise of powers granted under Rule 14A of the Central Goods and Services Tax (CGST) Rules, 2017, the Goods and Services Tax Network (GSTN) has introduced a Simplified GST Registration Scheme to curb the compliance burden and encourage the ease of doing business for small taxpayers.

Under Rule 14A, if a person thinks that the total GST they need to pay every month on selling goods or services to registered buyers will be Rs. 2.5 lakh or less, they can choose to register under this special scheme. However, once they register under this rule in a particular State or Union Territory, they cannot take another GST registration under the same PAN in that same State or Union Territory.

Significant Features Introduced on GST Portal:

• Applicants should choose “Yes” under the “Option for Registration under Rule 14A” at the time of filing FORM GST REG-01.
• According to the recent change introduced in the GST portal, Aadhaar authentication has now been made compulsory for the Primary Authorised Signatory and at least one Promoter/Partner.
• Applicants will have their GST registration approved electronically within three working days from the date of generation of the Application Reference Number (ARN). However, this will only be possible if Aadhaar authentication is completed.

Applicants seeking registration under Rule 14A are recommended to keep note of the following conditions. These conditions will apply to them if they want to withdraw from the scheme at a later stage:

• All returns due from the effective date of registration up to the date of filing the withdrawal application must be filed.
• The applicant should have finished filing their Income Tax Returns (ITRs) for a period of minimum three months, if applying for withdrawal before April 01, 2026, or for a period of minimum one tax period, if applying for withdrawal on or after April 01, 2026.
• No amendment or cancellation application for registration availed under Rule 14A should be pending.
• No proceedings under Section 29 (cancellation of registration) for registration availed under Rule 14A should be initiated or pending.