Notification No 18/2025-CT| Simplification of Registration Process for Small Taxpayer

Notification No 18/2025-CT focuses on Simplification of Registration Process for Small Taxpayer and other changes in the rules of GST for Registration process. To make the registration process faster, new rule 9A and 14A introduced.

Insertion of New Rule 9A:

It says that:

• If anyone applies for GST registration under Rule 8, Rule 12, or Rule 17,
• Then, based on system verification (data analysis and risk parameters),
• The registration will be granted automatically through the GST portal,
• And this must happen within 3 working days from the date the application is submitted

In simple words, Now, the GST portal can automatically approve registration applications within 3 working days using data analytics, without manual officer verification, if the system finds the applicant to be low risk.

Amendment in Rule 10(1):

Rule 10(1) deals with the issuance of GST registration certificate after approval. Earlier, it said that the certificate is issued to persons granted registration under rule 9. Now, it is amended to include rule 9A and rule 14A as well.

So, it will now read as — “…to persons granted registration under rule 9, rule 9A and rule 14A.”

In simple once registration is granted either manually (rule 9) or electronically (rule 9A) or under rule 14A (special registration cases) — the certificate will be issued in the same way.

Insertion of New Rule 14A:

This new rule gives a special and faster registration option for small taxpayers whose monthly GST output tax liability does not exceed ₹2.5 lakh.

(1) Who Can Opt for This Rule?:

 Any person applying for GST registration under Rule 8 (normal registration process). If such person’s total output tax liability (CGST + SGST/UTGST + IGST + Compensation Cess) on supplies made to registered persons is not more than ₹2.5 lakh per month,→ they can choose to get registration electronically under this simplified process.

(2) Aadhaar Authentication Mandatory:

 Only those who have opted for Aadhaar authentication can use this facility. Persons not verifying Aadhaar or notified under Section 25(6D) cannot apply under this rule. It means that Aadhaar Authentication is compulsory for this benefit.

(3) Only One Registration per State:

 A person can get only one registration under this rule per State/UT for the same PAN. They can’t take multiple registrations under Rule 14A in the same State.

 (4) Time Limit for Grant of Registration

 Once Aadhaar is verified successfully, → registration will be granted automatically within 3 working days from the date of application.

(5) How to Withdraw from This Option

 If the taxpayer later wants to exit from this scheme, they must:

• File FORM GST REG-32 electronically.
• But before doing so, they must file:
• At least 3 months’ returns, if applying before 1 April 2026, or
• At least 1 month’s return, if applying on or after 1 April 2026, and
• All pending returns from the registration date to the withdrawal date.
• Withdrawal application is allowed only if no cancellation proceedings (under Section 29) are pending.

(6) Amendment Before Withdrawal

 If any detail in the registration form (FORM REG-01) has changed, → the taxpayer must first update those details under Rule 19 before filing withdrawal.

(7) & (8) Verification at the Time of Withdrawal

 The system may again use risk analysis, Aadhaar/biometric authentication, photo verification, and document checks before allowing withdrawal. Acknowledgment procedures (like in Rule 8) will also apply.

 (9)–(10) Approval or Rejection of Withdrawal  

The application for withdrawal is verified under Rule 9 (standard registration verification rule).The officer will issue:

• FORM GST REG-33 – if withdrawal is approved, or
• FORM GST REG-05 – if rejected.

The order will be available on the GST portal within the same time limits as Rule 9.

(11)–(12) Effect After Withdrawal  

After withdrawal approval:

• The taxpayer can show output tax liability exceeding ₹2.5 lakh per month only from the first day of the next month after the withdrawal order.
• They cannot revise old data (before that date) to show higher tax liability.

 (13) If Cancellation Proceedings Are Pending

 If GST cancellation proceedings are already started by the proper officer after filing of withdrawal application and the said proceeding are pending, the withdrawal application under sub rule (5) shall be rejected by PO and the provisions in relation to approval of application on deemed basis under Rule 9(5) shall not be applicable in such case.

To apply above changes, changes in the following forms of Registration which will be applicable from 01-11-2025.

https://taxinformation.cbic.gov.in/view-pdf/1010504/ENG/Notifications

Notification No 18/2025