The Goods and Services Tax Network (GSTN) has enabled a new online facility on the GST portal for taxpayers to opt out of Rule 14A of the CGST Rules. Those taxpayers who are eligible can withdraw from the option by filing the requisite form on the GST Portal.

Rule 14A was introduced by GSTN in late 2025. The objective is primarily to simplify registration for small businesses.The Form GST REG-32 by GSTN is used by taxpayers to opt out of the new and simplified GST registration scheme under Rule 14A and switch back to normal GST registration. 

Rajat Mohan, Senior Partner at AMRG & Associates, says that the GSTN’s introduction of an online facility to withdraw from the Rule 14A registration option is a constructive procedural refinement that enhances flexibility within the compliance framework. 

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“Since Rule 14A offers a fast-track registration route for low-risk taxpayers, providing a seamless digital exit ensures the scheme remains genuinely optional as business circumstances change. This update reduces administrative friction, limits jurisdictional interface, and reinforces technology-driven governance while maintaining safeguards through authentication requirements. Overall, the move reflects a balanced regulatory approach that promotes ease of compliance alongside system integrity.” Mohan elaborates. 

How to apply on the GST Portal

After logging in on the GST portal, navigate to: Services -> Registration -> Application for Withdrawal from Rule 14A.

The GSTN notification has laid out the conditions.  As per that, only registered taxpayers can access this link. They  are registered under Rule 14A.

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

• Enter “Reason for withdrawal from Rule 14A”.

• Proceed to Aadhaar Authentication tab for Aadhaar Authentication of Primary Authorised Signatory and one Promoter/Partner.

Key conditions 

Here are the key terms and conditions highlighted by GSTN- 

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The registered person shall not be allowed to file Form GST REG-32 unless he has furnished:

(1) returns for a period of minimum three months, if Form GST REG-32 is filed before 1st April, 2026;

(2) returns for a period of minimum one tax period, if Form GST REG-32 is filed on or after 1st April, 2026; and

(3) all the returns due for the period from the effective date of registration till the date of filing of Form GST REG-32.

Important timeline 

  1. Draft application must be submitted within 15 days of creation.
  2.  Aadhaar/Biometric authentication must be completed within 15 days from submission.
  3.  If authentication is not completed within the prescribed time, ARN will not be generated.

Post-Sanction of Opt-Out

The taxpayer who has received an order in Form GST REG-33 allowing withdrawal shall be able to furnish the details of output tax liability on supply of goods or services or both made to registered persons, exceeding the output tax liability of Rs 2.5 lakhs, from the first day of the succeeding month in which the said order has been issued.