Introduction – Why This Rule Was Introduced?
The Government of India has introduced Rule 14A under the CGST Rules, 2017, effective from 1 November 2025, to make GST registration faster and easier for startups, freelancers, and small businesses.
Under this scheme, GST registration can be approved within just 3 working days, provided the taxpayer’s monthly GST liability on B2B supplies does not exceed ₹2.5 lakh.
This initiative supports:
✔ Ease of Doing Business
✔ Faster Business Onboarding
✔ Reduced Compliance Burden
Who Is Eligible Under Rule 14A?
You can apply for GST registration under Rule 14A if:
| Condition | Requirement |
|---|---|
| Monthly GST Output Tax on B2B Supplies | ≤ ₹2.5 lakh (including CGST + SGST/UTGST + IGST + Cess) |
| Aadhaar Authentication | Mandatory for Primary Authorized Signatory and one Promoter/Partner |
| Number of Registrations Allowed | Only 1 GST registration per PAN per State/UT |
| Applicable to | Startups, service providers, freelancers, new businesses with low tax liability |
Step-by-Step Process to Apply for GST Under Rule 14A
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Visit www.gst.gov.in
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Click on Services → Registration → New Registration
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Fill Form GST REG-01
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Under the question “Are you opting for registration under Rule 14A?” → Select YES
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Complete Aadhaar Authentication via OTP or face verification
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Upload business details and submit the application
⏳ Approval Time:
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✅ Within 3 working days (if Aadhaar is authenticated)
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❌ If Aadhaar is not authenticated → Physical verification may take 7–10 days
Benefits of Rule 14A – Why This Is Important for Small Businesses
| Benefit | Description |
|---|---|
| ✅ Fast Registration | GST number issued within 3 working days |
| ✅ Lower Compliance | Less documentation & no physical verification (if Aadhaar verified) |
| ✅ Cost Efficient | Reduces professional and administrative costs |
| ✅ Helps New Startups | Ideal for new businesses, freelancers, consultants & service providers |
| ✅ Increases Trust | Helps in opening current accounts, listing on marketplaces, and B2B deals |
How to Exit or Withdraw from Rule 14A Scheme?
| Withdrawal Timeline | Returns to be Filed Before Exit |
|---|---|
| Before 1 April 2026 | Last 3 months’ returns |
| On or after 1 April 2026 | Only 1 tax period return |
Other conditions:
✔ No pending cancellation or amendment requests
✔ All GST returns must be up to date
Rule 14A vs Composition Scheme – What’s the Difference?
| Feature | Rule 14A | Composition Scheme |
|---|---|---|
| Basis | Monthly GST liability | Annual turnover (≤ ₹1.5 Cr) |
| GST Rate | Regular GST rate | 1% / 5% / 6% |
| B2B Supplies | Allowed | Not allowed |
| Input Tax Credit (ITC) | Can be claimed | Not available |
| Returns | Monthly/Quarterly | CMP-08 (Quarterly) + GSTR-4 (Annually) |
Frequently Asked Questions (FAQs)
1. Is Rule 14A compulsory for every business?
No. It is completely optional.
2. Is this based on turnover?
No. It is based on monthly GST output tax liability, not turnover.
3. Can a freelancer or consultant apply under Rule 14A?
Yes – if their B2B GST liability is ≤ ₹2.5 lakh per month.
4. Can I use both Composition Scheme and Rule 14A together?
No. You can opt for only one.
5. Is physical verification needed?
No, if Aadhaar authentication is completed successfully.
6. What if my GST liability exceeds ₹2.5 lakh later?
You must shift to the regular GST registration process.
Disclaimer
This blog is for educational and informational purposes only. It should not be treated as legal or professional advice. GST laws and notifications may change over time. Please consult a qualified Chartered Accountant (CA) or refer to official government sources before making any business or compliance decisions.