GST for E-Commerce Sellers: The New Rule 14B Simplified Registration Scheme Explained

Scheme: Simplified registration — Rule 14B
For: Small sellers on e-commerce platforms
Key idea: ECO warehouse = your place of business
Limit: ITC ≤ ₹2.5 lakh/month

The short version

A new, optional GST registration route (Rule 14B) lets small online sellers register in a state without a physical office there — by using the platform's warehouse as their place of business.
It's for sellers supplying goods only through e-commerce operators (ECOs), with output tax to registered persons under ₹2.5 lakh/month.
You apply in FORM GST REG-01; the ECO must consent within 7 working days, then your home state does biometric Aadhaar verification, and registration is granted electronically.
One registration per PAN per state, used only for platform sales — no need to display your GSTIN at the warehouse.

If you sell on Amazon, Flipkart, Meesho or any other marketplace, you've probably hit the wall: to store stock in another state's fulfilment centre, you needed a place of business — and a registration — in that state. For a small seller, setting up an office in every state you ship to was never realistic. The GST Council's new Rule 14B scheme fixes exactly that.

What the Rule 14B scheme does

It's a simplified, optional registration mechanism for small sellers on e-commerce platforms. The core idea: in a state where you have no physical presence, you can declare the ECO's warehouse (its fulfilment centre) as your Principal Place of Business (PPoB) — and any other ECO warehouses there as Additional Places of Business (APoB). No office of your own required.

Who can use it — the eligibility conditions

Goods only, through ECOs. You must intend to supply goods exclusively through e-commerce operators who collect TCS under Section 52. No non-ECO supplies can be made on this registration.
The ₹2.5 lakh cap. Your total output tax (CGST + SGST/UTGST + IGST) on supplies to registered persons — other than those registered under the same PAN — must not exceed ₹2.5 lakh per month.
ECO consent. The platform must agree to let its warehouse be declared as your PPoB/APoB.
An existing home-state registration. You must already hold a regular registration (or a Rule 14A registration) in your home state.

How to register — step by step

Apply in FORM GST REG-01 on the GST portal, opting for registration under Rule 14B for the state/UT. Declare your home-state GSTIN (same PAN), the ECO warehouse to be your PPoB there, and any other ECO warehouses as APoB.
ECO consent. The application is forwarded to the ECO, which must decide within 7 working days. No consent in time → the application is deemed rejected.
Home-state verification. On consent, your home-state jurisdictional officer does biometric Aadhaar authentication, photo, document and physical verification of the PPoB (if not already done).
Registration granted electronically on successful verification — or rejected electronically if verification fails.

What your registration certificate shows

The certificate lists the ECO warehouses declared as PPoB/APoB in that state/UT, along with the address of your PPoB in your home state. And you do not need to display your registration certificate or GSTIN on a name board at the ECO warehouse.

Changing, withdrawing and cancellation

Situation	What to do / what happens
Amend warehouse address	File FORM GST REG-14; ECO consent applies again, then the PPoB/APoB stands amended. Other changes are amended to the extent applied for (Rule 19).
Moving from Rule 14A	If you're on Rule 14A in your home state and want Rule 14B in another state, first withdraw the Rule 14A option via FORM GST REG-32, then apply under 14B.
Withdraw from the scheme	File FORM GST REG-32.
ECO withdraws consent	You must file REG-14 within 30 days to change the PPoB/APoB. If you don't, the registration is deemed cancelled (communicated in FORM GST REG-38).
Home-state registration cancelled	The Rule 14B registration (built on it) is also cancelled.

Your obligations as a seller

Keep your books at home. Maintain books of account and records (including electronic data) at your home-state PPoB for each registration obtained in different states under the same PAN.
Produce them on demand from the proper officer of the state where you hold the Rule 14B registration.
Act fast if consent is withdrawn — the 30-day REG-14 window is what keeps the registration alive.

And what the platform (ECO) must do

The ECO must decide on consent within 7 working days, appoint an authorised representative in each state/UT to provide information the tax authorities need, and intimate on the portal if it withdraws consent for use of its warehouse.

Frequently asked

Can I make non-platform sales on this registration?

No. This registration is strictly for supplying goods through the ECO's platform. Non-ECO supplies cannot be made on it.

How many registrations can I get in one state under the scheme?

A single registration against a PAN in a state or union territory.

What if the ECO doesn't respond within 7 days?

If the ECO doesn't give consent within 7 working days, your application is deemed rejected.

Do I need a physical office in the new state?

No — that's the whole point. You need a physical presence only in your home state (where biometric verification happens); in other states you use the ECO's warehouse as your PPoB.

Is it compulsory?

No. It's an optional scheme. If your supplies don't fit the conditions (goods only via ECOs, ITC ≤ ₹2.5 lakh/month), you take ordinary registration instead.

Selling across India on marketplaces?

efiletax can check if you qualify for the Rule 14B scheme, handle your REG-01 filing and ECO consent, and manage your multi-state registrations — so you can sell everywhere without an office everywhere.

Disclaimer: This article explains the simplified GST registration scheme for e-commerce sellers (Rule 14B of the CGST Rules), based on the FAQs issued on the recommendations of the 57th GST Council meeting (8–9 October 2026), and is current as at the date of publication. The scheme takes effect through the relevant rule and notifications; forms, thresholds and conditions may be refined when notified. This is not legal or tax advice — please verify against the official documents and consult a qualified professional. Talk to efiletax if you need help.