GSTN Introduces Online Facility to Withdraw GST Registration as per Rule 14A

GSTN has introduced a new online facility on the GST portal that allows eligible taxpayers to apply for withdrawal from the option exercised under Rule 14A of the CGST Rules by filing Form GST REG-32.

Who can apply?

Active taxpayers who are registered under Rule 14A may apply to opt out, in accordance with the applicable legal provisions. The following are the steps to apply on the GST portal:

Step 1: Log in to the GST Portal.

Step 2: Navigate to services, then registration, and then application for withdrawal from Rule 14A. The link will only be visible if the taxpayer is registered under Rule 14A and is active.

Step 3: The field “Option for registration under Rule 14A” will already be set to No.

Step 4: Enter the reason for withdrawal from Rule 14A.

Step 5: Proceed to the Aadhaar Authentication tab for Aadhaar Authentication of the Primary Authorized Signatory and one Promoter/Partner.

Step 6: Proceed to the Aadhaar Authentication tab for authentication of the primary authorized signatory and one promoter/partner.

Important Conditions Before Applying

You cannot submit Form GST REG-32 unless:

• If applying before April 1, 2026, you must have filed GST returns for at least 3 months.
• If applying on or after April 1, 2026, you must have filed returns for at least one tax period.
• All GST returns from your registration date till the application date must be filed.

Aadhaar authentication

1. Depending on GST system analysis, authentication may be:

• OTP-based Aadhaar authentication, or
• Biometric Aadhaar authentication.

2. Authentication is compulsory for:

• Primary Authorized Signatory
• At least one Promoter/Partner (if applicable)

3. Application Reference Number (ARN) is generated only after successful authentication.

Time Limits You Must Follow

• The draft application must be submitted within 15 days of creation.
• Aadhaar/biometric authentication must be completed within 15 days after submission.
• If authentication is not completed in time, ARN will not be generated, and the application will fail.

Processing Limitations

When a taxpayer has already submitted Form GST REG-32 and it is still under process, they are not allowed to make any changes to their GST registration details during that time. This means they cannot apply for core amendments or non-core amendments or even apply for cancellation of their GST registration on their own.

Post-sanction of Opt-Out

If a taxpayer receives an order in Form GST REG-33 allowing them to withdraw their application, they will be permitted to report the details of their outward supplies made to registered persons, even when the output tax liability exceeds Rs. 2.5 lakh. However, this facility will be available only from the first day of the month following the month in which the withdrawal order is issued.