GST registration new rules from Nov 1: How small online sellers can expand across states — everything you need to know
Small businesses selling goods through online marketplaces can now expand their operations to other states without setting up a separate physical business premises in every state. A simplified GST registration facility came into effect on 1 November 2026, allowing eligible sellers to use an e-commerce operator's warehouse as their principal place of business (PPoB).
The Central Board of Indirect Taxes and Customs (CBIC) introduced the change through Notification No. 05/2026-Central Tax, dated October 26, 2026, inserting Rule 14B into the Central Goods and Services Tax Rules, 2017. The GST Council recommended the facility at its 57th meeting.
The facility is for small suppliers of goods selling through e-commerce operators (ECOs). A seller must already have a regular GST registration in the state where the business is based. It can then apply for registration in another state by declaring the e-commerce operator’s warehouse there as its principal place of business, without its own premises there.
There is a monthly tax-liability limit. The seller’s output tax liability on supplies to registered persons must not exceed ₹2.5 lakh. Supplies to registered persons having the same PAN as the seller are excluded from this calculation. The limit is based on tax liability, not turnover.
The seller must make supplies through an e-commerce operator required to collect tax at source under Section 52 of the CGST Act. The registration can be used only for supplies through that platform, and the seller must obtain the operator’s consent to use its warehouse as the declared place of business.
The seller must apply in Form GST REG-01, providing its home-state GSTIN and the e-commerce operator’s warehouse details for that state.
The application is sent to the operator for consent, which must be provided within seven working days. If the operator does not respond within that period, the application is treated as rejected.
After consent, the applicant must complete biometric Aadhaar authentication and document verification. The tax officer will also physically verify the seller’s principal place of business in the home state.
The rules provide for deemed approval if physical verification is not completed within 30 days from generation of the application reference number, after successful Aadhaar authentication and document verification.
If the operator withdraws consent for the warehouse declared as the principal place of business, the seller must seek an amendment through Form GST REG-14 within 30 days. Failure to do so can lead to cancellation of the registration. Consent withdrawn for an additional place may result in its deletion from the registration certificate.
A seller registered under Rule 14A cannot directly use this facility. It must first opt out by filing Form GST REG-32 and then apply under Rule 14B. The seller must keep its books and records at its home-state principal place of business. The operator must appoint an authorised representative in each state where it provides a warehouse.
The rule could lower compliance costs for small businesses selling across state borders through online marketplaces. Eligible sellers may not need to establish their own premises in every state where goods are stored or dispatched.
This is not a blanket exemption from state-wise GST registration. Sellers must meet the tax-liability limit, complete verification, route supplies through the platform and obtain its consent.
The CBIC notification and the government's FAQ explain the conditions and application process for the new facility.
Kirti jha
Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.
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