CBIC Introduces 3-Day GST Registration for Small Taxpayers

CBIC, in a major reform for promoting ease of doing business, has notified Notification No. 18/2025 – Central Tax dated 31st October 2025, thereby inserting Rule 9A and Rule 14A under the CGST Rules, 2017.

Under the new provision, small taxpayers may get 3-Day GST Registration after the filling for their application, electronically on the GST portal.

This move is part of the ongoing effort undertaken at CBIC to automate and smoothen the processes under GST through the use of data-driven systems for reducing approval delays and minimizing manual intervention.

Features of the 3-Day GST Registration Notification

• Relevant Notification: No. 18/2025 – Central Tax (31.10.2025)
• New Rules Introduced: Rule 9A and Rule 14A under the CGST Rules
• Applicability: Small taxpayers, if their prescribed conditions of tax liability are satisfied.
• Timeframe for Registration: Within 3 working days from filing the application
• Mechanism: Automated system using data analytics and PAN-GST database checks

Eligibility Criteria

Most importantly, the total output tax liability in goods or services for a taxpayer should not exceed ₹2,50,000 per month, including CGST, SGST/UTGST, IGST, and Compensation Cess, in order to avail faster registration.

This cap will ensure that only genuinely small taxpayers having limited liability are covered. Significantly, the rule measures eligibility by tax liability and not turnover, making it relevant across different tax slabs.

Tax Liability Threshold Illustration

Examples of things the notification provides clarity on will include:

Tax Amount (₹)                              Taxable Value (₹ per month)                                             Applicable GST Rate

2,50,000                                                        50,00,000                                                                                       5%

2,50,000                                                         13,88,890                                                                                      18%

2,50,000                                                          8,92,857                                                                                        28%

2,50,000                                                          6,25,000                                                                                       40%

For example, the illustration above says that a taxpayer supplying goods taxed at 5% can have up to ₹50 lakh of monthly sales and yet satisfy the criterion for availing of the scheme, while one transacting at 40% GST rate would qualify up to ₹6.25 lakh turnover.

Transactions Coverage

The scope covered by this notification is summarized below:

Transaction Type	Capping	Remarks
B2B Transaction	Applicable – ₹2.5 lakh monthly tax liability	Eligible under the scheme
B2C Transactions	No capping	Fully covered
Export Supplies	No capping	Fully covered
Import of Goods/Services	No capping	All covered

Whereas B2C, export, and import activities enjoy full latitude, B2B transactions still bear the threshold of the ₹2.5 lakh tax liability.

Automation and Processing Mechanism

The approval process will be done through an automated mechanism that is part of the GSTN system.

Key milestones included:

1. Verification of PAN and Aadhaar data through government databases.
2. Cross-checking against the GSTN database to assess risk and duplication.
3. Automated decision to approve or flag for review, according to the risk score.

CBIC Introduces Rule 9A & 14A for Faster GST Registration of Small Taxpayers

This structure accelerates genuine registrations without the compromise of any effective fraud prevention controls.

Impact on Small Businesses

This would be expected to have a significantly positive effect:

• Quicker Market Access: Companies can be operational almost right after applying.
• Reduced Compliance Delays: No more waiting for manual approval.
• Ease for Startups: Encourages first-time entrepreneurs to promptly formalize their business.
• Administrative Efficiency: Reduces workload on tax officers, besides obviating unnecessary scrutiny of low-risk applicants.

Economic and Compliance Significance This reform, therefore, is a reflection of the greater digital compliance vision of CBIC itself-away from manual verification and toward data-driven automation. Using advanced analytics to gauge risk, the government can accelerate the registration process, keeping the compliance integrity intact. This initiative also supports the “Ease of Doing Business” agenda for India and goes with digitization of the GST operations that have been undertaken through IMS and AI-powered monitoring tools.

How Can We help you?

At Cretum Advisory, we assist businesses with every step of GST compliance, right from GST Registration Services, return filing to advisory, audits, and refunds. Our experts analyze the client’s data, check eligibility as per the new notifications given by CBIC, and provide assistance in obtaining swift and error-free registrations with the help of the latest procedures prescribed by the GSTN.

We also help the small and medium-scale enterprises to optimally manage their tax liability and ongoing compliance under automated systems like Rule 9A & 14A. Whether setting up or expanding a business, our GST team ensures that your registration is smooth, compliant, and strategically structured. The Final Thought Notification No. 18/2025, introducing Rule 9A and 14A by CBIC, is another milestone in the GST administration of India. It will accelerate enablement for business and reduce the time for registration to three working days, and facilitate compliance confidence among the small taxpayers. This is a big step toward an automated, efficient, and taxpayer-friendly GST regime-a regime that supports small firms as an important pillar of the Indian economy.

 Frequently Asked Questions

1.What is the new deadline for small taxpayers to register for GST?

After submitting their application, eligible taxpayers can now receive registration approval in as little as three working days.

2. Who can avail of the benefit under fast GST registration?

It would be applicable to all those taxpayers whose tax liability in a month is up to ₹2.5 lakh on account of all GST components put together.

3. Are B2C and export transactions subject to any capping?

No, capping applies to B2B transactions only. Exports and B2C supplies are not covered.

4. Does not human intervention occur anymore?

Low-risk application verification is automated, but only highlighted cases may require manual checks.

5. How can companies guarantee prompt registration under the new regulation?

After confirming the accuracy and consistency of the PAN, Aadhaar, and company information, complete the GST registration form.