What changed
The Central Goods and Services Tax (Fourth Amendment) Rules, 2025, notified on 31 October 2025 and in force from 1 November 2025, insert Rule 14A in the CGST Rules, 2017, on the recommendations of the GST Council. A person applying under Rule 8 may opt for it if, on self-assessment, the output tax on supplies of goods or services to registered persons will not exceed ₹2.5 lakh a month. The limit is on tax, not turnover, and counts central tax, State or Union territory tax, integrated tax and compensation cess together. Supplies to unregistered customers do not count towards it.
The option is exercised by answering yes to the Rule 14A question in Form GST REG-01. Aadhaar authentication of the applicant is compulsory (OTP-based, as the amended REG-01 instructions say), except for persons notified under Section 25(6D). On successful authentication, registration is granted electronically within three working days of the date the application was submitted. Only one registration under Rule 14A is allowed for a PAN in a State or Union territory, so a business that needs several registrations in the same State applies in the normal way under Rule 9. The same notification amended Form REG-01 and REG-02, substituted Forms REG-03, REG-04 and REG-05, and inserted new Forms REG-32 and REG-33. It also inserted Rule 9A, under which the portal can grant registration within three working days to applicants identified on data analysis and risk parameters.
A person who expects to cross the ₹2.5 lakh limit must first apply to withdraw from the option in Form GST REG-32, and the officer’s order is issued in Form REG-33. Under Rule 14A(5), an application filed on or after 1 April 2026 needs returns for at least one tax period (three months for applications before that date), all returns due from the effective date of registration to the date of the application, and no proceedings under Section 29 initiated against the person. Any change in the REG-01 particulars must first be amended under Rule 19. Tax above the limit can be reported only from the first day of the month after the month in which the REG-33 order is issued.
Who is affected
New applicants for GST registration, mainly small businesses and professionals whose sales to registered customers carry little tax, and businesses that want quick registration and do not need more than one registration in a State.
Effective dates
| Item | Date or period |
|---|---|
| Notification 18/2025-Central Tax issued | 31 October 2025 |
| Rule 14A and Rule 9A in force | 1 November 2025 |
| Time to grant registration under Rule 14A | Within 3 working days of the application, after Aadhaar authentication |
| Revised withdrawal conditions (Form REG-32) | Applications from 1 April 2026 |
What to do now
- Estimate the monthly output tax on supplies to registered customers before choosing the option; the limit is ₹2.5 lakh of tax, not of turnover.
- Complete Aadhaar authentication for the applicant, as the route is not available without it.
- Check whether more than one registration in the State will be needed; if so, apply under the normal procedure.
- Track B2B tax each month and apply in Form REG-32 before the limit is likely to be crossed.
Penalty or consequence if missed
Rule 14A is an option, so there is no separate penalty for choosing it. The applicant declares in Form REG-01 that the business will abide by the conditions and restrictions for registering under Rule 14A, and tax above the ₹2.5 lakh limit can be reported only after withdrawal is allowed in Form REG-33. Rule 14A itself does not set a separate penalty, so the consequences of exceeding the limit depend on the general provisions of the CGST Act. The ordinary GST rules still apply: late returns attract a late fee and interest, and a registration can be cancelled for continued non-filing.
Official source
Effective: 1 Nov 2025 · Note published · Last reviewed
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- GST return filing guide
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This note summarises a public notification for general information. It is not professional advice and does not cover every condition or exception, and the rule can change again by a later notification. Read the notification itself before acting on it, or consult a qualified professional on your own facts.