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. The application for opt-out can be filed electronically in Form GST REG-32 through the GST Portal.

This advisory outlines the eligibility, procedure, pre-conditions, authentication requirements, timelines, restrictions, and post-sanction implications.

1. Eligibility to Apply

Active taxpayers who are registered under Rule 14A may apply for withdrawal (OPT OUT) in accordance with the provisions of the law.

2. Procedure to Apply on the GST Portal

After logging into the GST Portal, navigate as follows:

Services → Registration → Application for Withdrawal from Rule 14A

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

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

• The taxpayer must enter the reason for withdrawal from Rule 14A.

• Thereafter, proceed to the Aadhaar Authentication tab for authentication of:

  • Primary Authorised Signatory, and

  • One Promoter/Partner (where applicable).

3. Key Pre-Conditions for Filing Form GST REG-32

A registered person shall not be permitted to file Form GST REG-32 unless the following conditions are satisfied:

• If filed before 1st April, 2026:
  Returns must have been furnished for a minimum period of three months.

• If filed on or after 1st April, 2026:
  Returns must have been furnished for a minimum period of one tax period.

• In addition, all returns due from the effective date of registration up to the date of filing Form GST REG-32 must have been furnished.

4. Aadhaar Authentication Requirements

Based on data analysis, the taxpayer will be required to undergo either:

• OTP-based Aadhaar authentication, or

• Biometric-based Aadhaar authentication.

Authentication is mandatory for:

• The Primary Authorised Signatory, and

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

The Application Reference Number (ARN) will be generated only after successful completion of Aadhaar authentication.

5. Important Timelines

• The draft application must be submitted within 15 days of its creation.

• Aadhaar/Biometric authentication must be completed within 15 days from submission of the application.

• If authentication is not completed within the prescribed time, ARN will not be generated.

6. Restrictions During Processing of Application

While Form GST REG-32 remains pending after submission, the taxpayer shall not be permitted to file:

• Core amendment application

• Non-core amendment application

• Self-cancellation application

7. Post-Sanction of Opt-Out

Upon issuance of an order in Form GST REG-33 allowing withdrawal from Rule 14A:

The taxpayer shall be able to furnish the details of output tax liability on supplies of goods or services or both made to registered persons, exceeding the output tax liability of ₹2.5 lakhs, from the first day of the succeeding month in which the order has been issued.

This facility streamlines the process for eligible taxpayers seeking withdrawal from Rule 14A and introduces defined compliance conditions, authentication requirements, and timelines to ensure orderly processing through the GST Portal.