From 1 November 2026, a small seller who already has GST registration in one state can register in another state by declaring an e-commerce operator's warehouse there as the principal place of business, even without an office or staff in that state. This is the new Rule 14B of the CGST Rules, 2017, inserted by Notification No. 05/2026–Central Tax dated 26 October 2026. It applies only to goods sold through e-commerce operators that collect tax at source (TCS), and only within a monthly limit on tax passed to registered buyers.
Why was Rule 14B needed?
Marketplace sellers often store stock in an operator's fulfilment centre in another state so that orders reach buyers faster. Under GST, holding and supplying goods from a state needs a registration in that state, and a registration needs a principal place of business. Small sellers had no office of their own there, so many could not use these warehouses at all.
The GST Council, at its 57th meeting on 8 October 2026, recommended a simple route: let such sellers declare the operator's warehouse as their place of business, with registration granted by the system subject to conditions. The government then notified Rule 14B through the CGST (Amendment) Rules, 2026, which came into force on 1 November 2026. You can read our summary of the 57th GST Council meeting for the other changes recommended that day.
Who can register under Rule 14B?
All of these conditions must be met:
| Condition | What it means in practice |
|---|---|
| Home-state registration | You already hold a regular GST registration in one state where you have a physical place of business |
| No physical presence | You have no place of business of your own in the state where you want the new registration |
| Goods through an e-commerce operator | You supply goods through an operator that is liable to collect TCS under section 52 of the CGST Act |
| Tax passed to registered buyers | Your output tax on supplies to registered persons (other than your own branches on the same PAN) does not exceed the limit of ₹2.5 lakh a month |
| Operator's consent | The operator agrees to its warehouse being declared as your principal place of business |
| One per state | Only one Rule 14B registration is allowed per PAN in a state |
Rule 14B covers supplies of goods through such operators only. It is not meant for selling offline or through your own website from that state. Sellers whose sales to businesses are large enough to cross the monthly limit should take a normal registration instead.
How do you apply under Rule 14B?
The application goes through the GST portal in the revised Form GST REG-01. The steps, as set out in the rule and the GST portal FAQs:
- File REG-01 for the new state and choose the e-commerce operator's warehouse as the principal place of business. Declare the GSTIN you already hold on the same PAN in your home state. Other warehouses of the operator in that state can be added as additional places of business.
- Operator consent. The application is sent to the operator, which has seven working days to give or refuse consent. Without consent, the application is not processed further.
- Home-state verification. After consent, the jurisdictional officer of your home state completes biometric Aadhaar authentication, photograph and document checks and physical verification of your home-state premises, where these were not done earlier.
- Grant. Registration is granted electronically once verification succeeds. If physical verification is not done within 30 days, the application is deemed approved. If verification finds no business at the home-state premises, the application is deemed rejected and intimated in the new Form REG-05A.
The certificate shows the operator's warehouse address in the new state along with your home-state address.
What are your duties after registration?
A Rule 14B registration is a full GST registration, so normal returns and payments apply in that state. A few points are specific to this route:
| Duty | Rule 14B position |
|---|---|
| Books of account | Kept at your principal place of business in the home state, and produced when the officer of the Rule 14B state asks |
| Display of GSTIN | Not required at the operator's warehouse |
| Change of warehouse address | File REG-14; the change takes effect when the operator consents |
| Other amendments | File REG-14 under the normal amendment rule |
| Leaving the scheme | Withdraw by filing REG-32 |
Keep stock records warehouse-wise. The operator's inventory reports are useful, but the legal duty to keep accounts stays with you.
When is a Rule 14B registration cancelled?
The rule provides for deemed cancellation by the portal, intimated in the new Form REG-38, in these cases:
- the operator withdraws its permission for the warehouse, or the operator's own TCS registration is cancelled, and you do not file an amendment within 30 days;
- your home-state registration, on which the Rule 14B registration rests, is cancelled.
So the extra registration depends fully on two things: a live home-state GSTIN and a continuing relationship with the operator. If you change marketplaces or stop using a fulfilment centre, act within the 30-day window. Keep your home-state returns up to date too, because a cancellation there pulls down every Rule 14B registration linked to it.
What about sellers already registered under Rule 14A?
Rule 14A gives quick, system-based registration to applicants who do not expect to pass on more than ₹2.5 lakh of input tax credit a month. A seller whose home-state registration is only under Rule 14A must first withdraw from Rule 14A by filing REG-32, and only then apply under Rule 14B in another state.
Is Rule 14B right for your business?
It suits small brands and resellers who sell mostly to consumers on marketplaces and want stock closer to buyers in other states. It is less suitable if you:
- sell large volumes to GST-registered businesses, so the monthly limit is likely to be crossed;
- plan to sell offline or through your own website from that state;
- are not regular with home-state returns, since a cancellation there affects all linked registrations.
Before applying, confirm with your marketplace that its warehouse in that state is open to Rule 14B sellers and how it gives consent on the portal.
How Indian Salahkar can help
Indian Salahkar works closely with Chartered Accountants and Advocates to help online sellers in Agra and across India check eligibility, file REG-01 and keep returns in order. See our GST registration and GST returns and compliances services to get started.
Frequently asked questions
What is Rule 14B of the CGST Rules?
Rule 14B, inserted by Notification No. 05/2026–Central Tax dated 26 October 2026, lets a seller already registered in one state take GST registration in another state by declaring an e-commerce operator's warehouse there as the principal place of business.
Who can register under Rule 14B?
A person with a regular GST registration in a home state, selling goods through an e-commerce operator that collects TCS under section 52, whose output tax on supplies to registered persons does not exceed the limit of ₹2.5 lakh a month, and whose operator consents.
What happens if the e-commerce operator does not give consent?
The operator has seven working days to decide. Without consent the application is not processed further. If consent is later withdrawn, the seller must file an amendment in REG-14 within 30 days or the registration is deemed cancelled.
Where must books of account be kept for a Rule 14B registration?
At the principal place of business in the home state. They must be produced when the officer of the state where the Rule 14B registration was taken asks for them. The GSTIN need not be displayed at the warehouse.
Can a Rule 14A registrant use Rule 14B?
Not directly. A seller registered only under Rule 14A in the home state must first withdraw from that option by filing Form GST REG-32, and then apply under Rule 14B in the other state.
Sources: tutorial.gst.gov.in · pib.gov.in · gstcouncil.gov.in
General information, not professional advice. Rules change — check the current position before acting.
