GST Rule 14B from 1 November 2026: E-Commerce Seller Registration Using Marketplace Warehouses Across States

What Rule 14B changes

From 1 November 2026, eligible sellers of goods can apply for GST registration in a State or Union territory where they have no physical business premises by declaring a consenting e-commerce operator’s warehouse as their principal place of business.

Rule 14B is designed for sellers who already have a regular GST registration and a physical business presence in a “home State”. It can help them make marketplace sales from warehouses in other States without setting up their own office or shop in each State.

The Central Goods and Services Tax (Amendment) Rules, 2026 were notified through Notification No. 05/2026–Central Tax dated 26 October 2026. The GST Council had recommended the change earlier in October. The notified rule takes effect on 1 November 2026.

This is a registration route, not a tax exemption. Sellers must continue to meet GST invoicing, return, tax-payment and record-keeping requirements for each registration.

Who can use GST Rule 14B?

A person may qualify if they:

• already have a regular GST registration in a State or Union territory where they have a physical business presence;
• want GST registration in another State or Union territory where they have no physical presence;
• intend to supply goods through an e-commerce operator required to collect tax at source under section 52;
• have the operator’s consent to use its warehouse as the principal place of business; and
• expect their monthly output tax liability on supplies to registered persons to be no more than ₹2.5 lakh.

The ₹2.5 lakh limit is output tax liability, not sales turnover, invoice value or input tax credit. It applies to the covered supplies to registered persons and includes the relevant central, State or Union territory and integrated tax. Supplies to a person registered under the same PAN are excluded from this test.

Under this option, one registration is allowed against a PAN in a particular State or Union territory. If you are seeking registrations in multiple States, review the requirements for each one.

Rule 14B is not a general GST exemption

Rule 14B does not mean that every small seller can sell across India without GST registration. It provides a way for an existing regular registrant to obtain an additional registration in another State, subject to the conditions above.

It is different from the separate exemption that may allow certain small, unregistered sellers to supply goods through an e-commerce operator without GST registration. That exemption has its own conditions, including that the seller must not make inter-State supplies. Rule 14B is for an existing regular registrant seeking registration in another State through an e-commerce operator’s warehouse.

The scheme does not cover:

• supplies of services through a marketplace;
• supplies outside the qualifying e-commerce operator under this registration;
• a seller without a qualifying regular GST registration in a home State;
• a warehouse the operator has not agreed to declare; or
• a seller whose monthly output tax liability exceeds the prescribed limit.

A seller must still follow other GST requirements and restrictions that apply to their business or tax scheme. Rule 14B does not remove restrictions that apply to composition taxpayers.

TaxClear’s GST registration guide explains general registration routes such as Rule 14A. Rule 14B has a different purpose: it is for qualifying e-commerce sellers using warehouses in States where they have no physical presence.

How to apply for registration under Rule 14B

The application is made on the GST common portal through Form GST REG-01. Portal screens and field labels may change when the rule takes effect, so follow the instructions shown during the application.

1. Check your home-State registration

Confirm that your existing registration is a regular GST registration and that you have a physical business presence in that State or Union territory. Keep your GSTIN, PAN, business address and supporting documents ready.

If your home-State registration is under Rule 14A, you must first withdraw from that option using Form GST REG-32 before applying under Rule 14B.

2. Confirm the warehouse and obtain the operator’s consent

Speak with the e-commerce operator before applying. Confirm which warehouse address can be declared as the principal place of business and obtain the operator’s consent through the prescribed process.

You may also provide details of other eligible warehouses in that State or Union territory as additional places of business, as permitted by the rule. Do not assume a warehouse can be added simply because the platform stores or ships your products from there.

3. Submit Form GST REG-01

Apply for registration in the State or Union territory where you have no physical presence. The application must identify your existing home-State GSTIN under the same PAN and provide the relevant warehouse details.

The application is forwarded to the e-commerce operator for consent. The operator has seven working days to communicate its decision. If consent is not given within that period, the application will not proceed further.

4. Complete verification

After the operator consents, the application goes to the jurisdictional officer in your home State. Biometric Aadhaar authentication, document verification and physical verification of the home-State principal place of business may be required if those checks have not already been completed successfully.

Keep the business premises accessible and make sure the business activity and documents can be verified. If verification is unsuccessful, the application may be rejected. Submission of the form does not mean you have received a GSTIN.

The rule also provides a deemed-approval mechanism if the officer does not complete the required physical verification within 30 days after the application reference number is generated following successful biometric authentication and document verification.

5. Check the registration certificate

Registration is granted electronically after the required checks. The certificate records the home-State principal place of business and the e-commerce operator’s warehouse declared as the principal or additional place of business in the new State.

Review the certificate and portal profile. Confirm that the correct warehouse, State and registration details appear before making supplies under the new GSTIN.

What happens after the new GSTIN is granted?

A Rule 14B GSTIN is a separate State registration. Treat it as part of your ongoing GST compliance, not just as an address for marketplace onboarding.

The seller should:

• issue invoices using the GSTIN applicable to the supply;
• report supplies and pay tax under the appropriate registration;
• reconcile marketplace sales, returns, cancellations and tax collected at source;
• keep records for each GSTIN, including warehouse and marketplace documents;
• monitor the monthly output tax liability covered by the Rule 14B condition; and
• file required returns, including nil returns where applicable.

For more on marketplace tax collection and seller credit, see TaxClear’s guide to GST TCS on marketplace sales. The small-business GST compliance guide covers routine controls for invoices, returns and records.

Records to keep

Keep records supporting your home-State business and marketplace activity in the other State. These may include:

• GST registration certificates and application acknowledgments;
• PAN and business-constitution documents;
• the e-commerce operator’s consent and warehouse details;
• seller agreements and marketplace settlement statements;
• invoices, credit notes, returns and delivery records;
• working papers for the monthly output tax liability test; and
• reconciliations of marketplace sales, GST returns and tax collected at source.

The seller must maintain books and related records at the principal place of business in the home State for each registration obtained under the scheme. The proper officer in the State where the Rule 14B registration is held may ask for these records.

What if the e-commerce operator withdraws consent?

The operator may withdraw its consent for the warehouse. If the warehouse declared as the principal place of business changes or consent is withdrawn, act promptly.

Where required, apply to amend the registration details through Form GST REG-14. The scheme’s FAQ says the seller must make the necessary change within 30 days of the operator’s intimation. If consent for the principal place of business is withdrawn and the seller does not make the required amendment within that period, the registration may be deemed cancelled electronically. Cancellation of the home-State registration may also affect the Rule 14B registration.

Keep track of notices and messages from the operator and GST portal. Retain evidence of consent for any replacement warehouse.

Example: a seller using a marketplace warehouse in another State

A seller has a regular GST registration and physical business premises in Maharashtra. The seller wants to use a marketplace warehouse in Karnataka, where they have no separate premises.

If the marketplace is an operator required to collect tax at source under section 52, consents to the warehouse declaration, and the seller meets the other Rule 14B conditions, the seller may apply for Karnataka GST registration through Form GST REG-01.

Suppose the seller’s monthly output tax liability on supplies to registered buyers covered by the test is ₹1.8 lakh. That is within the ₹2.5 lakh limit. The seller must still complete the operator-consent and home-State verification steps. If the monthly liability exceeds the limit or another condition is no longer met, review the registration and take the action required under the rules.

The example does not mean that ₹1.8 lakh of sales is the relevant threshold. The test is the tax liability on specified supplies, not the value of sales.

Checklist before applying

Before filing, check the following:

• Do you have a regular home-State registration and a genuine physical business location?
• Are you seeking registration in a State where you have no physical presence?
• Will you supply goods through an operator required to collect TCS under section 52?
• Does the operator agree to the specific warehouse declaration?
• Is your monthly output tax liability on covered supplies to registered persons within the ₹2.5 lakh limit?
• If your home-State GSTIN is under Rule 14A, have you withdrawn through Form GST REG-32 first?
• Can you complete any required biometric Aadhaar authentication, document verification and physical verification?
• Do you have a process to reconcile sales, returns, marketplace settlements, TCS and GST returns for each GSTIN?
• Has someone been assigned to monitor operator consent, warehouse changes and portal notices?

If you are unsure whether the conditions apply, confirm eligibility before applying. A rejected application or incorrectly maintained additional registration can disrupt marketplace operations and create return mismatches.

FAQs

When does GST Rule 14B take effect?

The Central Goods and Services Tax (Amendment) Rules, 2026, were notified through Notification No. 05/2026–Central Tax. The general commencement date is 1 November 2026, which includes Rule 14B.

Can a seller apply without an existing GST registration?

No. Rule 14B is for a seller already registered in a home State or Union territory with a physical business presence. The seller applies for another registration in a different State using the same PAN.

Is the ₹2.5 lakh limit based on monthly sales?

No. It is based on the specified monthly output tax liability on supplies to registered persons, excluding recipients registered under the same PAN. It is not a turnover or invoice-value limit.

Can the seller use the registration for direct sales outside the marketplace?

Rule 14B is for supplies of goods through the qualifying e-commerce operator. It should not be treated as a general registration route for unrelated sales. Review the registration requirements before making other supplies.

Is registration automatic when Form GST REG-01 is filed?

No. The application needs the operator’s consent and may require home-State biometric Aadhaar authentication, document verification and physical verification. Registration is granted electronically after the required process.

Does the seller need to display the GSTIN at the marketplace warehouse?

The scheme FAQ says a person registered under Rule 14B is not required to display the registration certificate and GSTIN on the name board at the e-commerce operator’s warehouse. Display requirements may still apply at other business premises.