(a) Mohit Sharma runs "Mohit Enterprises," a small electronics accessories trading firm based out of a single shop in Karol Bagh, Delhi. Having…

CA Final · Indirect Tax Laws · RTP · November 2026
(a) Mohit Sharma runs "Mohit Enterprises," a small electronics accessories trading firm based out of a single shop in Karol Bagh, Delhi. Having heard from fellow traders in the market about a new "Fast Track Registration" facility under rule 14A that promises registration within days rather than weeks, Mohit decides to explore this option. He determines that his output tax liability on supplies made to registered dealers and retailers (i.e., B2B supplies), taking together CGST, SGST and IGST, is ₹ 2.30 lakh per month. Mohit is keen to avoid the delay and hassle of a physical site visit. He duly applies for registration under rule 8, opts for Aadhaar authentication and completes it successfully using his personal Aadhaar linked to his PAN. Examine whether Mohit Enterprises is eligible to obtain registration under Rule 14A. (b) Kavya Agarwal of Jaipur, who owns "Kavya Industries," has recently diversified her single garment-manufacturing business into two distinct verticals operating from two different premises within the same city, one dealing in men's ethnic wear and the other in women's western wear. Both verticals are run under the same PAN and individually, each has monthly B2B output tax liability of ₹ 2.2 lakh and ₹ 1.8 lakh and satisfy other conditions prescribed under rule 14A. Kavya's tax consultant advises her that she should obtain two separate Fast Track Registrations under rule 14A- one for each vertical -so that both verticals can get quick, Aadhaar-based registration without any site visit. Examine whether Kavya Industries can validly obtain two separate rule 14A registrations for its two business verticals within the same State, as advised by her consultant.

Suggested Answer and Working Notes:

14. Rule 14A provides a simplified and faster mode of GST registration for small taxpayers whose monthly output tax liability on B2B supplies does not exceed ₹ 2.5 lakh. Under this option, a person can get registered electronically within 3 working days, based purely on Aadhaar authentication, without the need for physical verification (no site visit). A person is eligible to opt for this facility provided: He has made an application for registration under rule 8 His total output tax liability on supply of goods and/or services made to registered persons (CGST and SGST/UTGST and IGST and compensation cess) does not exceed ₹ 2.5 lakh per month. He must opt for and undergo successful Aadhaar authentication. Where these conditions are met, registration is granted electronically by the common portal within 3 working days of successful Aadhaar authentication, without any physical/site verification. Further, rule 14A restricts a taxpayer to only one registration per State/UT against the same PAN under this option. In view of above provisions, registration requirements in given cases are as follows: (a) Monthly B2B output tax liability of Mohit Enterprises is determined at ₹ 2.30 lakh, which is within the prescribed threshold of ₹ 2.5 lakh. Mohit has also applied under rule 8 and successfully completed Aadhaar authentication. All conditions prescribed under rule 14A are thus satisfied. Thus, Mohit Enterprises is eligible to opt for Fast Track Registration under rule 14A. (b) Although both verticals of Kavya Industries independently satisfy the tax-liability and Aadhaar-authentication conditions, rule 14A expressly permits only a single registration per State/UT under the same PAN. Since both verticals are located within the same State (Rajasthan) and operate under the same PAN, the restriction applies regardless of the fact that they represent distinct business lines. Thus, Kavya Industries cannot obtain two separate rule 14A registrations for its two verticals. Only one Fast Track Registration under rule 14A can be obtained for a State and the consultant's advice to seek two such registrations is not correct in law.

Topics: Registration

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