The Goods and Services Tax Network (GSTN) on February 21, 2026, issued a notification regarding the Facility for Withdrawal from Rule 14A.
Goods and Services Tax Network (GSTN) has introduced an online facility that allows eligible taxpayers to withdraw from the option taken under Rule 14A of the CGST Rules by filing Form GST REG-32 on the GST Portal. This option is available only to active taxpayers who are currently registered under Rule 14A and wish to opt out in accordance with legal provisions. The application link appears after login under Services → Registration → Application for Withdrawal from Rule 14A, where taxpayers must provide a reason for withdrawal and complete Aadhaar authentication.
Before applying, certain compliance conditions must be met. Taxpayers must have filed returns for at least three months if the form is filed before 1 April 2026, or at least one tax period if filed on or after that date. Additionally, all returns due from the date of registration up to the application date must be furnished. Aadhaar authentication is mandatory for the Primary Authorised Signatory and one Promoter/Partner, and the application reference number (ARN) is generated only after successful authentication, which may be OTP-based or biometric depending on system analysis.
Strict timelines apply to the process. A draft application must be submitted within 15 days of creation, and Aadhaar or biometric authentication must also be completed within 15 days of submission. If authentication is not completed within this period, the ARN will not be generated and the application will not proceed. While the withdrawal application is under processing, taxpayers are restricted from filing core amendments, non-core amendments, or self-cancellation requests.
Once the withdrawal is approved through an order in Form GST REG-33, the taxpayer gains the ability to report output tax liability on supplies made to registered persons exceeding ₹2.5 lakh. This reporting becomes effective from the first day of the month following the issuance of the approval order, marking the taxpayer’s formal exit from the Rule 14A framework.
