The Central Government, under powers conferred by Section 164 of the Central Goods and Services Tax Act, 2017, and on the recommendation of the GST Council, has issued Notification No. 18/2025 – Central Tax amending the CGST Rules, 2017. These amendments, termed as the Central Goods and Services Tax (Fourth Amendment) Rules, 2025, come into force from 1st November 2025.
Key Highlights of the Amendment:
- Rule 9A – Grant of Registration Electronically
- A new Rule 9A is inserted to provide for electronic grant of registration based on data analysis and risk parameters.
- Registration will be auto-approved within three working days from the date of submission of the application.
- Rule 14A – Option for Taxpayers with Low Monthly Output Tax Liability
- Introduced for taxpayers whose monthly output tax liability on supplies to registered persons does not exceed ₹2.5 lakh.
- Such persons may opt for electronic registration under this rule.
- Aadhaar authentication is mandatory for eligibility.
- Restriction on Multiple Registrations under Rule 14A
- A person registered under this rule cannot obtain another registration in the same State or Union Territory under the same PAN.
- Application and Withdrawal Provisions
- Application for registration and withdrawal from this option will be processed electronically via the GST common portal.
- Withdrawal requires filing FORM GST REG-32 and is permitted only after furnishing required returns for minimum three months (before 1st April 2026) or one tax period (on or after 1st April 2026).
- Order of withdrawal will be issued in FORM GST REG-33.
- Verification and Risk Checks
- Verification will follow procedures in Rule 9, including Aadhaar or biometric authentication and document verification.
- Applications may be subject to risk-based scrutiny before approval.
- Amendments in Related Rules and Forms
- Rule 10(1) updated to include rules 9A and 14A.
- Revised formats introduced for:
- FORM GST REG-01: Now includes the option for registration under Rule 14A and Aadhaar OTP authentication.
- FORM GST REG-03, REG-04, REG-05: Updated for seeking clarifications, providing additional information, and rejecting applications.
- New FORM GST REG-32: Application for withdrawal under Rule 14A.
- New FORM GST REG-33: Order confirming withdrawal approval.
- Operational Restrictions
- Once registered under Rule 14A, a person cannot amend details to increase output tax liability beyond ₹2.5 lakh/month for the relevant period.
- If cancellation proceedings under Section 29 are initiated, withdrawal under Rule 14A will not be allowed.
Practical Implications:
- Simplifies registration process for low-liability taxpayers through auto-grant mechanism.
- Reduces administrative burden via data-driven risk assessment.
- Introduces structured withdrawal process with compliance checks to prevent misuse.
- Enhances transparency with updated digital forms and clear procedural timelines.
Notification Reference: GST
Notification No.18/2025 – Central Tax
31 /10 /2025