Rule 14A at a glance
| Legal basis | Rule 14A, CGST Rules, 2017 (Notification No. 18/2025–Central Tax) |
|---|---|
| In force from | 1 November 2025 |
| Eligibility | Output tax on supplies to registered persons up to ₹2.5 lakh a month (CGST + SGST/UTGST + IGST + cess) |
| Approval time | Within 3 working days of successful Aadhaar authentication |
| Aadhaar | Mandatory for the primary authorised signatory and at least one promoter/partner |
| Limit | One Rule 14A registration per PAN per State/UT |
| How to opt | Select "Yes" for "Option for registration under Rule 14A" in Form GST REG-01 |
| Withdrawal | Form GST REG-32; order in REG-33 (allowed) or REG-05 (rejected) |
| Government fee | Nil |
Rule 14A vs regular GST registration
| Point | Rule 14A (simplified) | Regular registration |
|---|---|---|
| Who can apply | Small suppliers with B2B output tax up to ₹2.5 lakh/month | Anyone liable or opting to register |
| Approval | Electronic, within 3 working days after Aadhaar authentication | Usually 7 working days; up to 30 days with physical verification or queries |
| B2B tax ceiling | Yes, ₹2.5 lakh/month until you withdraw | No ceiling |
| Registrations per PAN per State | Only one under Rule 14A | More than one allowed (e.g. separate business verticals) |
| Moving out | Withdraw via REG-32 after the minimum return filing period | Not applicable |
Who should choose Rule 14A?
- New shops, traders and service providers who mainly sell to consumers (B2C)
- Small B2B suppliers whose monthly GST on sales to registered buyers stays within ₹2.5 lakh
- Freelancers and professionals who need a GSTIN quickly for a client or platform
- E-commerce sellers starting out with modest volumes
How to withdraw from Rule 14A (Form GST REG-32)
When your GST on B2B sales is likely to cross ₹2.5 lakh a month, you must first withdraw from Rule 14A. GSTN enabled the online withdrawal facility through its advisory dated 21 February 2026.
Conditions before applying
- The registration is Active.
- All returns due from the date of registration till the date of the application are filed.
- Returns are filed for at least one tax period (at least three months for applications made before 1 April 2026).
- No application for amendment or cancellation of registration is pending, and no cancellation proceedings under Section 29 have started.
Step-by-step on the GST portal
- Log in at www.gst.gov.in.
- Go to Services → Registration → Application for Withdrawal from Rule 14A.
- The field "Option for registration under Rule 14A" shows No; keep it as it is.
- Enter the reason for withdrawal, for example "B2B output tax liability expected to exceed ₹2.5 lakh per month". This field is mandatory.
- Submit the application within 15 days of creating the draft, otherwise the draft lapses.
- Complete Aadhaar authentication of the primary authorised signatory and at least one promoter/partner within 15 days of submission. Depending on the system's risk analysis, this is OTP-based or biometric at a GST Suvidha Kendra.
- On successful authentication, an ARN is generated. Keep it to track the application.
After filing
- While the withdrawal application is pending, you cannot file core or non-core amendments or an application for cancellation of registration.
- The proper officer examines the application. If clarification is needed, a notice may be issued in REG-03, to be answered in REG-04.
- The officer passes an order in Form GST REG-33 allowing the withdrawal, or in REG-05 rejecting it.
- Effect: from the first day of the month after the month in which REG-33 is issued, you can report output tax on B2B supplies above ₹2.5 lakh a month. It does not apply to any earlier period.
Documents required
- PAN of the business or proprietor
- Aadhaar (linked to mobile) of the authorised signatory and at least one promoter/partner, with photographs
- Proof of the place of business: electricity bill or property tax receipt, plus rent agreement or consent letter
- Bank account proof: cancelled cheque or bank statement
- Constitution documents for firms, LLPs and companies, and the authorisation letter or board resolution
Our process
- Eligibility check: we estimate your monthly B2B output tax and confirm whether Rule 14A or regular registration is better for you.
- Application: we file Form GST REG-01 with the Rule 14A option and upload your documents.
- Aadhaar authentication: you complete the OTP authentication on your mobile; we guide you through it.
- Registration: the GSTIN and certificate are usually issued within 3 working days.
- Later withdrawal: when your business grows, we file REG-32 at the right time so your billing is not disrupted (see the withdrawal process).
Read the full guide: Rule 14A simplified GST registration explained. For businesses not eligible for Rule 14A, see our regular GST registration service.
Frequently Asked Questions
What is Rule 14A GST registration?
It is an optional, simplified registration scheme inserted in the CGST Rules by Notification No. 18/2025–Central Tax, effective 1 November 2025. An eligible applicant who opts for it in Form GST REG-01 gets registration electronically within 3 working days of successful Aadhaar authentication.
Who can opt for Rule 14A?
A person who self-assesses that their output tax liability on supplies made to registered persons (B2B) will not exceed ₹2.5 lakh a month, including CGST, SGST/UTGST, IGST and compensation cess. Aadhaar authentication of the primary authorised signatory and at least one promoter or partner is mandatory.
Can I have more than one Rule 14A registration?
No. Only one registration under Rule 14A is allowed for a PAN in a State or Union Territory.
What if my B2B tax liability goes above ₹2.5 lakh a month?
You must first withdraw from Rule 14A by filing Form GST REG-32. You can report a higher output tax liability only from the first day of the month after the month in which the withdrawal order (REG-33) is issued.
How do I withdraw from Rule 14A on the GST portal?
Go to Services → Registration → Application for Withdrawal from Rule 14A, enter the reason, submit within 15 days of creating the draft, and complete Aadhaar authentication within 15 days of submission. An ARN is generated, and the officer issues REG-33 (allowed) or REG-05 (rejected).
When can I withdraw from Rule 14A?
After filing all returns due from the date of registration till the date of the withdrawal application, for at least one tax period (three months for applications made before 1 April 2026), with no pending amendment or cancellation application and no proceedings under Section 29.
Are B2C sales covered by the ₹2.5 lakh limit?
The limit is on output tax on supplies made to registered persons. Supplies to unregistered customers (B2C) are not counted towards it, but all supplies must still be reported in your returns.