Rule 14A of the CGST Rules created a Simplified GST Registration Scheme for small businesses. If your sales to other GST-registered businesses carry little tax, you can get registered within three working days. This guide covers who can use it and how to leave it later.

Who can opt in

Anyone who, on their own assessment, expects their output tax on supplies to registered persons to be ₹2.5 lakh or less per month. This total includes CGST, SGST/UTGST, IGST and compensation cess.

You can hold only one Rule 14A registration per PAN in a State/UT.

How to apply

  1. In FORM GST REG-01, select "Yes" for "Option for Registration under Rule 14A".
  2. Complete Aadhaar authentication for the Primary Authorised Signatory and at least one promoter or partner (this is mandatory).
  3. Registration is granted electronically within three working days of the ARN, provided Aadhaar authentication succeeds.

Withdrawing from Rule 14A (FORM GST REG-32)

If your business grows past the limit, you can opt out on the portal.

Path: Services → Registration → Application for Withdrawal from Rule 14A (visible only to active Rule 14A taxpayers).

Before you can file REG-32:

  • returns for at least one tax period must be filed (for applications from 1 April 2026; it was three months before that), and
  • all returns from the date of registration up to the application must be filed, and
  • no amendment or cancellation application, and no Section 29 cancellation proceedings, should be pending.

Process and time limits:

  • Submit the draft within 15 days of creating it.
  • Complete Aadhaar authentication (OTP or biometric, as the system decides) for the Primary Authorised Signatory and at least one promoter or partner within 15 days of submitting. No authentication means no ARN.
  • While REG-32 is pending, you can't file amendments or a self-cancellation.

After approval (FORM GST REG-33): from the first day of the next month, you can report output tax on B2B supplies above ₹2.5 lakh.

Rule 14A or Rule 14B?

Rule 14A is for small taxpayers generally. Rule 14B is a separate scheme for e-commerce sellers using marketplace warehouses in states where they have no office. See our Rule 14B guide.

Official sources