GSTN has introduced an online facility on the GST Portal enabling eligible registered persons to apply for withdrawal from the option exercised under Rule 14A. The facility applies to active taxpayers registered under Rule 14A who intend to opt out in accordance with the prescribed provisions. The update specifies procedural requirements, filing conditions, and authentication obligations necessary before submission of the withdrawal application. It also outlines timelines and restrictions applicable during processing of the application.

GSTN has enabled filing of Form GST REG-32 on the GST Portal for withdrawal from Rule 14A for eligible active taxpayers registered under Rule 14A.

The registered person shall not be allowed to file Form GST REG-32 unless he has furnished—
(a) returns for a period of minimum three months, if Form GST REG-32 is filed before 1st April, 2026;
(b) returns for a period of minimum one tax period, if Form GST REG-32 is filed on or after 1st April, 2026; and
(c) all the returns due for the period from the effective date of registration till the date of filing of Form GST REG-32.

Based on data analysis, the taxpayer shall undergo OTP-based or biometric Aadhaar authentication. Authentication is mandatory for the Primary Authorised Signatory and at least one Promoter/Partner, where applicable. ARN shall be generated only after successful Aadhaar authentication.

The draft application must be submitted within 15 days of creation, and Aadhaar/Biometric authentication must be completed within 15 days from submission, failing which ARN shall not be generated.

While Form GST REG-32 is pending after submission, the taxpayer shall not file core amendment, non-core amendment, or self-cancellation application.

Upon issuance of order in Form GST REG-33 allowing withdrawal, the taxpayer shall furnish details of output tax liability on supplies made to registered persons exceeding Rs. 2.5 lakhs from the first day of the succeeding month in which such order is issued.