Rule 14A: Fast-Track GST Registration and the ₹2.50 Lakh Limitation

With effect from 1 November 2025, Rule 14A of the Central Goods and Services Tax Rules, 2017 introduced an optional simplified route for GST registration. An applicant under Rule 8 may opt for registration under Rule 14A where the total output tax liability on supplies made to registered persons does not exceed ₹2,50,000 per month, comprising CGST, SGST/UTGST, IGST and Compensation Cess. Aadhaar authentication is mandatory, subject to the statutory exception under Section 25(6D) of the CGST Act, 2017. Upon successful Aadhaar authentication, registration is to be granted electronically by the common portal within three working days from submission of the application. The important restriction The ₹2.50 lakh threshold is not a turnover limit. It relates specifically to output tax liability arising from supplies made to registered persons (B2B supplies). Further, a taxpayer registered under Rule 14A cannot continue under this simplified route once the applicable B2B output-tax limit is exceeded. The GST Portal presently restricts generation of the GSTR-1/IFF summary where tax reported on registered-person supplies exceeds ₹2.50 lakh in a month. The taxpayer may withdraw from Rule 14A by filing FORM GST REG-32. After the withdrawal is approved in FORM GST REG-33, the taxpayer may furnish B2B output-tax liability exceeding the prescribed limit from the first day of the succeeding month. What about ITC? Rule 14A does not prescribe a separate ₹2.50 lakh ceiling on the recipient's ITC. However, the restriction on furnishing B2B supplies may have an indirect ITC consequence for customers, since Section 16(2)(aa) of the CGST Act, 2017 requires the supplier to furnish the invoice details in its statement of outward supplies and such details to be communicated to the recipient. Accordingly, businesses expecting substantial B2B supplies should evaluate the commercial implications before opting for Rule 14A. Statutory References: Section 16(2)(aa) & Section 25, CGST Act, 2017 Rules 8, 9A, 10 and 14A, CGST Rules, 2017 Notification No. 18/2025–Central Tax dated 31 October 2025 Forms GST REG-01, REG-32 and REG-33