Use the optional route for the right seller and location
Notification 05/2026–Central Tax inserted rule 14B from 1 November 2026. It provides an optional registration route for qualifying goods sellers using an electronic commerce operator required to collect tax at source under section 52. The seller must already hold a registration under rule 9 in a State or Union territory. It uses the same PAN and declares an eligible operator warehouse in the target State or Union territory where it has no physical presence. This is a registration route; it does not itself exempt a supply or waive tax. Government guidance describes the scheme as a route for goods supplied exclusively through qualifying operators. Do not use the registration for direct-channel sales without confirming the correct registration route for those sales.
Read the applicable text: Gazette: Notification 05/2026–Central Tax, rule 14B and REG-01 PIB: marketplace seller registration guidance.
Test the monthly amount on the specified supplies
Rule 14B(1) sets a ceiling of ₹250,000 per month on the specified output tax on supplies to registered recipients, excluding recipients registered on the same PAN. Combine CGST, SGST or UTGST and IGST as relevant for those transactions. Maintain a separate total for the scope test: the statutory amount is output tax liability on the specified population, not gross sales or the balance after input tax credit. Document the forecast used for entry and monitor the same population monthly. The exclusion of same-PAN transactions here does not decide their underlying tax treatment.
File REG-01 with verified warehouse details
Declare the home State GSTIN where the seller has a physical presence and the operator warehouse as the target principal place of business. Include details of any other declared operator warehouse in that State or Union territory as an additional place. Use the rule 14B option in REG-01 and keep evidence of operator consent. Subrule (5) gives the operator seven working days to consent; without consent in that period the application does not progress. Subrules (6) to (12) address home State authentication, document and premises verification and specified approval situations. Where the home registration is under rule 14A, submit the REG-32 application to withdraw from that option before applying, as subrule (15) requires. Under subrule (28), an applicant who has not opted for Aadhaar authentication is ineligible, apart from persons notified under section 25(6D).
Maintain a consent and registration calendar
On change of warehouse address, check the REG-14 and consent route under subrule (16). If consent is withdrawn, track the actual portal intimation and the thirty-day amendment route in subrule (18); Check subrules (23) and (24) separately: an additional warehouse can be removed from the certificate if the required amendment is not filed within 30 days of withdrawal of permission. A principal warehouse can affect the registration itself; subrule (24) specifies deemed cancellation and REG-38 for stated failures or events, including cancellation of the home registration. The trigger for these consequences may differ from the date of portal intimation used for subrule (18). Do not assume that warehouse consent is permanent or that filing the application alone permits transactions under a new GSTIN. Monitor the home registration and any change in sales channel or business model before continuing to rely on this option.
Six worked illustrations
All facts and amounts are fictional. Calculations illustrate the stated assumptions, not a predetermined legal outcome.
Illustrative example 1: Exact ceiling
Eligible B2B amounts are ₹85,000 CGST, ₹85,000 SGST and ₹80,000 IGST. The total is ₹250,000, which does not exceed the ceiling, assuming the other conditions are satisfied.
Illustrative example 2: Exclude same-PAN transactions for this test
The working identifies ₹270,000 of output tax, including ₹40,000 on transactions with recipients registered on the same PAN. The amount tested is ₹230,000, leaving ₹20,000 of headroom.
Illustrative example 3: Do not reduce the test by ITC
Specified output tax is ₹265,000 and ITC available is ₹100,000. Even if the illustrative net balance is ₹165,000, the test amount exceeds the ceiling by ₹15,000.
Illustrative example 4: Do not average monthly figures
Forecast qualifying amounts are ₹210,000 and ₹280,000 in consecutive months. The average is ₹245,000, but the second month exceeds the monthly ceiling by ₹30,000.
Illustrative example 5: Consent window
Assume the application is forwarded on Monday 9 November 2026, counting the seven following working days, with weekends excluded and no intervening holiday. The seventh is Wednesday 18 November. Check the applicable calendar and portal event in practice.
Illustrative example 6: Withdrawal intimation
Assume portal intimation on 3 November 2026 and ordinary elapsed-day counting. The thirty-day marker is 3 December 2026. A 5 December amendment is two days beyond that marker; verify the separate consequence for the affected premises.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Verify the home State and same PAN | GSTIN and registration particulars. |
| 2 | Confirm absence of target physical presence | Premises and business profile. |
| 3 | Identify section 52 operators | Platform terms and registration evidence. |
| 4 | Document intended sales channels | Product and channel plan. |
| 5 | Calculate the monthly ceiling population | Invoice taxonomy and head-wise output tax. |
| 6 | Exclude same-PAN recipients from this test | Recipient PAN and GSTIN mapping. |
| 7 | Check warehouse particulars and consent | Address proof and portal records. |
| 8 | File REG-01 and track verification | Acknowledgement and home State verification record. |
| 9 | Monitor changes and withdrawal | Consent calendar and REG-14 evidence. |
| 10 | Approve continuing status | Registration certificate and monthly exception review. |
Sixteen practitioner FAQs
1. Is Rule 14B mandatory for marketplace sellers?
No. It is an optional route for qualifying applicants.
2. Which form is used to apply?
FORM GST REG-01.
3. Must the home GSTIN be on the same PAN?
Yes.
4. Can a seller use any warehouse address?
Use eligible operator warehouse details and obtain the required consent.
5. Does the ceiling measure turnover?
No. It measures specified output tax.
6. Is exactly ₹250,000 above the ceiling?
No. The rule says the amount must not exceed that figure.
7. Can ITC be netted for this test?
No. It is an output-tax measure.
8. Are same-PAN recipients counted in the ceiling?
They are excluded for this test.
9. Does their exclusion make those supplies non-taxable?
No. Apply the underlying supply rules separately.
10. Can two months be averaged?
No. The limit is monthly.
11. What if the operator does not consent?
After the specified seven working days without consent, the application is not processed further.
12. Can the warehouse be an additional place?
The rule accommodates other operator warehouses in the same State or Union territory, subject to the process.
13. What if home State verification was completed earlier?
Check the relevant processing path under rule 14B.
14. What if the home State registration uses rule 14A?
Review the required REG-32 step before applying.
15. Which form addresses warehouse amendments?
FORM GST REG-14 under the applicable subrule.
16. Does the rule allow another same-PAN registration in the same State under the stated circumstances?
Subrule (29) bars another registration against the same PAN in that State or Union territory where the person is already registered there under this rule.
Official sources
Gazette: Notification 05/2026–Central Tax, rule 14B and REG-01 PIB: marketplace seller registration guidance