CBIC Implements Technology-Driven GST Registration System from November 1

CBIC Implements Technology-Driven GST Registration System from November 1

Issue: To combat fraudulent registrations using bogus firms and enhance the ease of doing business for legitimate taxpayers, the CBIC introduced a new technology-driven, risk-based GST registration system with streamlined timelines.

Facts:

• The Central Board of Indirect Taxes and Customs (CBIC) notified the Central Goods and Services Tax (Fourth Amendment) Rules, 2025.
• These amendments come into effect from November 1, 2025.
• The new system integrates automation and risk-based assessment to vet applicants.

Decision:

The CBIC implemented two new rules, Rule 9A and Rule 14A, creating a faster, automated registration track based on risk parameters, with a reduced processing timeline of three working days.

Key TakeDowns:

• Automatic Electronic Registration (New Rule 9A): Regardless of the existing process under Rule 9, eligible applicants identified by the common portal based on data analysis and risk parameters will be granted registration electronically within three working days from the submission date.
• Special Option for Small Businesses (New Rule 14A): A new category for small taxpayers is introduced where the monthly output tax liability on supplies made to registered persons does not exceed ₹2,50,000.
• Mandatory Aadhaar Authentication: To prevent fraud, taxpayers opting for the special electronic registration under Rule 14A must authenticate their Aadhaar number.
• Withdrawal Procedure: Rule 14A includes a detailed procedure for the taxpayer to withdraw from this option (via new FORM GST REG-32), setting conditions for the filing of pending returns and barring withdrawal if cancellation proceedings have already begun.
• Fraud Prevention: The system leverages data analytics and risk parameters to ensure efficiency for compliant taxpayers while enforcing stringent verification (including biometric checks under Rule 8(4A)) for applicants deemed high-risk.