Rule 14B: Register in Another State Using a Marketplace Warehouse

If you sell on Amazon, Flipkart or Meesho and store stock in a marketplace warehouse in another State, GST has so far expected you to register in that State too, with a place of business to show for it. For a small seller, renting space just to get a GSTIN was often the reason to stay in one State.

Rule 14B, recommended by the 57th GST Council on 8 October 2026, is meant to remove that step. It is reported to apply from 1 November 2026 under Notification 05/2026-Central Tax. Here is how it works, based on the Council's press release and its FAQ on the recommendations.

What Rule 14B does

You declare the marketplace's warehouse in the other State as your principal place of business. No lease, no office. Your registration certificate then lists the marketplace warehouse as the place of business in that State, along with your address in the home State.

It is related to Rule 14A, which makes registration faster, but the two solve different problems. 14A is about speed of getting a GSTIN. 14B is about where you can register without a physical presence.

Who qualifies

All of these must hold:

• Goods only, and only through marketplaces that collect TCS under Section 52. Services, offline sales and your own website's sales cannot go through this registration.
• Output tax on B2B supplies up to ₹2.5 lakh a month, counting supplies to registered persons other than registrations on your own PAN. The Council's press release frames the same limit as ITC passed on of no more than ₹2.5 lakh a month, so treat the lower of the two readings as your safe limit.
• A regular registration in your home State, other than one under 14A or 14B. If you hold only a 14A registration at home, withdraw it first in FORM GST REG-32.
• Marketplace consent to declare its warehouse as your place of business.
• One Rule 14B registration per PAN per State.

How the application works

1. File FORM GST REG-01 for the target State, citing your home-State GSTIN, the warehouse address and any other warehouses of that marketplace in the State.
2. The portal forwards it to the marketplace, which has seven working days to consent. No consent means the application is deemed rejected.
3. After consent, your home-State officer does Aadhaar biometric authentication, photo and document verification, where not already done.
4. If verification succeeds, the portal grants registration electronically. If not, it is rejected electronically.

What you must keep doing

• Books and records: keep them at your principal place of business in the home State for each registration, and produce them if the officer of the other State asks.
• Separate GSTIN, separate returns: each registration files its own returns. Ask your CA partner how to set up filing before the first sale from the new State.
• Amendments: to change the marketplace warehouse address, apply in FORM GST REG-14, which also needs the marketplace's consent.
• No GSTIN board needed: you need not display the certificate or GSTIN at the marketplace warehouse.

When the registration ends

• The marketplace withdraws consent and you do not amend your place of business within 30 days: the registration is deemed cancelled (FORM GST REG-38).
• Your home-State registration is cancelled.
• You can also withdraw voluntarily in FORM GST REG-32.

Who should look at it

• Pre-launch sellers: you register at home first. Rule 14B is something to plan for once you decide to stock in a second State.
• Unregistered sellers: you cannot use 14B until you have a regular registration at home. Check whether you need GST first.
• Scaling sellers: this is the group it helps most. Compare the cost of a registered office in each State against staying within the ₹2.5 lakh cap.

Check before you rely on it

• The rule text, notification number and effective date come from secondary reports, not the notification itself. Confirm them with your CA partner.
• Ask your marketplace whether it supports Rule 14B and for which warehouses. Consent is theirs to give.
• GSTN also launched a separate "Multistate Registration" facility on 1 October 2026 that lets one applicant fill common details once for several States. That is a portal convenience, not Rule 14B.

For the other changes from the same meeting, see 57th GST Council: what changed for online sellers. For the basics of registering, see the GST registration guide and the GST registration page.

Sources: GST Council, FAQs on Recommendations Made in the 57th GST Council Meeting (simplified registration for ECO sellers); PIB press release, 8 Oct 2026 (recommendation for Rule 14B); GSTN advisory on Multistate Registration, 1 Oct 2026; TaxGuru on Rule 14B (effective date and notification number, reported).