GSTN Launches Online Facility For Withdrawal From Rule 14A Under CGST Rules

The Goods and Services Tax Network now provides an online service through which the interested taxpayers may request withdrawal as per Rule 14A of the CGST Rules, 2017 via the GST Portal. This facility is operational and can be accessed with the Form GST REG 32.

The development eliminates the physical visits or manual correspondence of tax authorities. This is subject to, however, compliance history, Aadhaar authentication conditions, and rigorous timelines. These requirements should be taken into consideration by taxpayers who wish to withdraw before starting the application.

What is Rule 14A under the CGST Rules?

The specific group of GST-registered taxpayers who work under different compliance conditions is regulated by Rule 14A of the CGST Rules, 2017. Companies registered under this rule are liable to extra procedure-related conditions than ordinary GST-registered companies.

In the long run, some businesses might realise that their operational structure does not fit within the Rule 14A framework. This may arise due to changes in turnover, transaction patterns, or an increase in B2B supplies. Recognising this practical need, GSTN has formalised a fully digital withdrawal mechanism.

Eligibility Criteria For Filing a Withdrawal Application

The online withdrawal facility is available only to taxpayers who meet the following conditions:

• The taxpayer must be active on the GST Portal
• The taxpayer must be registered under Rule 14A of the CGST Rules

Eligible taxpayers will see the option to file an Application for Withdrawal from Rule 14A within their dashboard after login. If the link is not visible, the registration type does not qualify for withdrawal under this facility.

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Filing Procedure For Form GST REG 32

The application process has been designed to be straightforward. After logging in to the GST Portal at (https://www.gst.gov.in ), taxpayers must navigate as follows:

Services > Registration > Application for Withdrawal from Rule 14A

Key steps include:

• The registration option under Rule 14A will auto-populate as “No”
• The applicant must provide a reason for withdrawal
• Aadhaar authentication must be completed before submission

Submission of the application is valid only after successful authentication.

Mandatory Compliance Requirements Before Filing

GSTN has prescribed minimum return filing conditions that must be satisfied prior to submitting Form GST REG 32. The requirement varies depending on the date of application:

Form GST REG 32. The requirement varies depending on the date of application:

Applications will not be processed if pending returns exist. Taxpayers are advised to ensure complete return compliance before initiating withdrawal.

Aadhaar Authentication Requirement

Aadhaar authentication is mandatory for processing Form GST REG 32. The following persons must authenticate:

• Primary Authorised Signatory, mandatory
• At least one Promoter or Partner, where applicable

The system determines the authentication method based on internal data validation parameters.

Available Authentication Modes

• OTP-based Aadhaar authentication
• Biometric-based Aadhaar authentication

The Application Reference Number is generated only after successful authentication. If authentication is not completed within the prescribed timeline, the application becomes invalid.

Critical Timelines For Application Processing

Strict timelines apply to both submission and authentication:

Failure to adhere to these timelines will require the taxpayer to initiate a fresh application.

System Restrictions During Processing Period

Once Form GST REG 32 is submitted, certain activities are temporarily restricted until a decision is issued. During this period, taxpayers cannot:

• File Core Amendment applications
• File Non-Core Amendment applications
• Apply for Self-Cancellation

These restrictions remain in force until the withdrawal application is approved or rejected.

Approval Process And Post-Withdrawal Compliance

Upon approval, GSTN will issue an order in Form GST REG 33 confirming withdrawal from Rule 14A.

Following approval, an additional reporting obligation becomes applicable. From the first day of the month succeeding the month of issuance of the REG 33 order, the taxpayer must furnish details of output tax liability relating to supplies made to registered persons where such liability exceeds Rs. 2.5 lakh.

Practical Illustration

If the REG 33 order is issued in March 2026, the reporting obligation will commence from April 1, 2026.

This requirement applies exclusively to B2B supplies and covers output tax liabilities exceeding Rs. 2.5 lakh. The objective is to enhance invoice-level transparency within the GST ecosystem.

Summary Of Key Compliance Points

Conclusion

A major procedural enhancement under the GST regime is the introduction of an online withdrawal facility under Rule 14A. GSTN has minimised administrative friction by digitising the process using Form GST REG 32, but has not compromised compliance safeguards.

To ensure that withdrawal is not delayed, taxpayers who intend to withdraw their money should focus on the compliance of the submission of returns and on full Aadhaar authentication. The process is well organised with a set of eligibility conditions being clearly defined and timelines being strictly followed, which makes it transparent and administratively streamlined.