Facility for Withdrawal from Rule 14A Enabled on GST Portal

GST compliance landscape continues to evolve. In a significant update, the Goods and Services Tax Network (GSTN) has enabled a new online facility for eligible taxpayers to apply for withdrawal from the option availed under Rule 14A of the CGST Rules by filing Form GST REG-32 on the GST Portal.

This move provides flexibility to taxpayers who had earlier opted for registration under Rule 14A and now wish to opt out as per legal provisions.

    

1️⃣ Who Can Apply?

The following taxpayers are eligible:

• ✅ Active taxpayers registered under Rule 14A

• ✅ Taxpayers who satisfy all statutory conditions for opting out

• ❗ The withdrawal option will be available only if the taxpayer is currently active and registered under Rule 14A

    

2️⃣ How to Apply on the GST Portal?

Eligible taxpayers can follow these steps:

🔹 Step 1: Login to the GST Portal
🔹 Step 2: Navigate to:

Services → Registration → Application for Withdrawal from Rule 14A

🔎 Important Points:

• The link will be visible only if the taxpayer is registered under Rule 14A and is active.

• The field “Option for registration under Rule 14A” will be auto-selected as “No”.

• Enter the Reason for withdrawal from Rule 14A.

• Proceed to the Aadhaar Authentication tab.

    

3️⃣ Key Pre-Conditions Before Filing Form GST REG-32

Taxpayers must fulfill return filing requirements:

📌 If filed before 1st April 2026:

• Must have furnished returns for a minimum of three months

📌 If filed on or after 1st April 2026:

• Must have furnished returns for at least one tax period

📌 In all cases:

• All returns due from the effective date of registration till the date of filing REG-32 must be filed

Failure to meet these conditions will prevent filing of Form GST REG-32.

4️⃣ Aadhaar Authentication Requirement

Based on system data analysis, taxpayers will undergo either:

• 🔹 OTP-based Aadhaar Authentication
  OR

• 🔹 Biometric-based Aadhaar Authentication

Authentication is mandatory for:

• ✔ Primary Authorised Signatory

• ✔ At least one Promoter/Partner (where applicable)

⚠ ARN (Application Reference Number) will be generated only after successful Aadhaar authentication.

5️⃣ Important Timelines

⏳ Draft application must be submitted within 15 days of creation.
⏳ Aadhaar/Biometric authentication must be completed within 15 days from submission.

If authentication is not completed within the prescribed timeline:
❌ ARN will not be generated.

6️⃣ Restrictions During Processing

While Form GST REG-32 is pending:

🚫 Taxpayer cannot file:

• Core amendment application

• Non-core amendment application

• Self-cancellation application

This restriction continues until disposal of the application.

7️⃣ After Approval – What Happens?

Once withdrawal is approved through Form GST REG-33, the taxpayer:

• Can furnish details of output tax liability on supply of goods or services made to registered persons

• Applicable where output tax liability exceeds ₹2.5 lakh

• Effective from the first day of the succeeding month in which the withdrawal order is issued

🔎 Tax Manthan Insight

This facility ensures greater compliance flexibility while maintaining strict safeguards such as mandatory return filing and Aadhaar authentication.

Taxpayers planning to opt out should:

• Ensure complete return compliance

• Verify Aadhaar details in advance

• Avoid delays in authentication to prevent rejection

For businesses evaluating their GST structure, this development offers an opportunity to reassess compliance strategy under Rule 14A.

For more such GST updates, compliance insights, and practical tax guidance, stay connected with Tax Manthan.

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Team Tax Manthan