{"id":6621,"date":"2025-11-03T17:35:14","date_gmt":"2025-11-03T12:05:14","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6621"},"modified":"2025-11-03T17:35:14","modified_gmt":"2025-11-03T12:05:14","slug":"copy-of-cgst-fourth-amendment-rules","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/copy-of-cgst-fourth-amendment-rules","title":{"rendered":"Copy of CGST (Fourth Amendment) Rules, 2025"},"content":{"rendered":"

NOTIFICATION NO. 18\/2025 \u2013 CENTRAL TAX<\/a>, Dated 31-10-2025<\/em><\/p>\n

1. Background<\/h2>\n

The Central Board of Indirect Taxes and Customs (CBIC)<\/strong> has issued the Central Goods and Services Tax (Fourth Amendment) Rules, 2025<\/em>, introducing a new Rule 14A<\/strong> to the CGST Rules, 2017.<\/p>\n

This amendment provides a simplified registration mechanism<\/strong> for taxpayers with lower monthly output tax liabilities. The reform is aimed at:<\/p>\n

    \n
  • Streamlining the GST registration process,<\/li>\n
  • Expanding the taxpayer base, and<\/li>\n
  • Promoting voluntary compliance among small businesses and service providers.<\/li>\n<\/ul>\n

    2. Key Provision \u2013 Optional Registration Based on Output Tax Liability<\/h2>\n

    2.1 Introduction of Rule 14A<\/h3>\n

    Under Rule 14A<\/strong>, taxpayers whose monthly output tax liability<\/strong> does not exceed the prescribed threshold can now voluntarily obtain GST registration<\/strong>.<\/p>\n

    2.2 Threshold Limit<\/h3>\n

    The specified threshold for availing this option is \u20b92.5 lakh per month<\/strong>.<\/p>\n

    This limit will be calculated on the total output tax liability<\/strong> arising from supplies made to registered persons<\/strong>, including the following components:<\/p>\n

      \n
    • Central Goods and Services Tax (CGST<\/strong>)<\/li>\n
    • State Goods and Services Tax (SGST<\/strong>)<\/li>\n
    • Union Territory Goods and Services Tax (UTGST<\/strong>)<\/li>\n
    • Integrated Goods and Services Tax (IGST<\/strong>)<\/li>\n
    • Compensation Cess<\/strong>, where applicable<\/li>\n<\/ul>\n

      2.3 Beneficiaries<\/h3>\n

      This optional registration particularly benefits small-scale suppliers<\/strong> who primarily engage in B2B transactions<\/strong>, enabling them to register under GST even if their aggregate turnover<\/strong> is below the limits prescribed under Section 22 of the CGST Act<\/strong>.<\/p>\n

      3. Faster Registration Approval Timeline<\/h2>\n

      In a move to improve taxpayer experience, the CBIC has announced that registration applications<\/strong> filed under Rule 14A will be approved within three working days<\/strong> from the date of submission.<\/p>\n

      This is a significant reduction from earlier timelines, promoting:<\/p>\n

        \n
      • Faster onboarding<\/strong> of new taxpayers, and<\/li>\n
      • Improved compliance efficiency<\/strong> within the GST ecosystem.<\/li>\n<\/ul>\n

        4. Amendments in GST Registration Forms<\/h2>\n

        To operationalise the new rule, several changes have been made to the GST registration forms<\/strong>, ensuring a seamless application process on the GST portal.<\/p>\n

        5. Key Modifications<\/h3>\n
          \n
        • \n

          Form GST REG-01 (Application for Registration):<\/strong><\/p>\n<\/li>\n

        • \n
            \n
          1. Updated to include a new field for declaring monthly output tax liability<\/strong>.<\/li>\n
          2. Enables applicants to opt for registration under Rule 14A<\/strong> directly.<\/li>\n<\/ol>\n<\/li>\n
          3. \n

            Form GST REG-06 (Certificate of Registration) \u2013 <\/strong>Updated format to reflect registration granted under Rule 14A.<\/p>\n<\/li>\n<\/ul>\n

            These updates ensure clarity and transparency for applicants during registration and post-registration verification.<\/p>\n

            6. Objective of the Amendment<\/h2>\n

            The introduction of Rule 14A aligns with the Government\u2019s broader vision of ease of doing business<\/strong> and aims to achieve the following objectives:<\/p>\n

              \n
            • Simplify voluntary registration<\/strong> for small and micro enterprises.<\/li>\n
            • Reduce compliance burdens<\/strong> for low-volume taxpayers.<\/li>\n
            • Encourage formalisation<\/strong> of B2B suppliers who may otherwise remain outside the GST net.<\/li>\n
            • Strengthen tax transparency<\/strong> and ensure a cleaner input tax credit (ITC)<\/strong> chain.<\/li>\n<\/ul>\n

              By widening access to voluntary registration, the amendment promotes better credit flow<\/strong> within the supply chain, enhancing trust between suppliers and buyers.<\/p>\n

              7. Expected Impact<\/h2>\n

              The implementation of Rule 14A is expected to yield the following benefits:<\/p>\n

                \n
              1. Higher Participation \u2013 <\/strong>More small businesses will join the GST system, broadening the taxpayer base.<\/li>\n
              2. Efficient Credit Flow \u2013<\/span> <\/strong>Registered buyers will experience smoother input tax credit availment from small suppliers.<\/li>\n
              3. Reduced Delays \u2013<\/span> <\/strong>Quicker approval timelines will ensure timely activation of new GSTINs.<\/li>\n
              4. Enhanced Compliance Monitoring \u2013<\/span> <\/strong>The reform will help tax authorities maintain real-time visibility of smaller economic participants.<\/li>\n<\/ol>\n

                8. Conclusion<\/h2>\n

                The insertion of Rule 14A<\/strong> under the CGST Rules, 2017 marks an important step toward simplified GST governance<\/strong>.<\/p>\n

                By:<\/p>\n

                  \n
                • Setting a \u20b92.5 lakh monthly output tax threshold<\/strong>,<\/li>\n
                • Ensuring registration approval within three working days<\/strong>, and<\/li>\n
                • Updating registration forms for easy online application<\/strong>,<\/li>\n<\/ul>\n

                  the CBIC has reinforced its commitment to ease of doing business<\/strong>, voluntary compliance<\/strong>, and inclusive participation<\/strong> in the GST regime.<\/p>\n

                  This amendment is a progressive step toward a more efficient, transparent, and accessible<\/strong> tax administration framework for India\u2019s small business ecosystem.<\/p>\n","protected":false},"excerpt":{"rendered":"

                  NOTIFICATION NO. 18\/2025 \u2013 CENTRAL TAX, Dated 31-10-2025 1. Background The Central…<\/p>\n","protected":false},"author":8,"featured_media":6634,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,62,189],"tags":[],"class_list":["post-6621","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-statutory-scope"],"yoast_head":"\nCopy of CGST (Fourth Amendment) Rules, 2025<\/title>\n<meta name=\"description\" content=\"CBIC notifies Rule 14A under CGST Rules, 2025\u2014allowing simplified GST registration for taxpayers with monthly output tax liability up to \u20b92.5 lakh.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/copy-of-cgst-fourth-amendment-rules\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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