GST registration new rules from Nov 1: How small online sellers can expand across states — everything you need to know

The new Rule 14B allows eligible sellers using e-commerce platforms to obtain GST registration in states where they have no physical presence by declaring an e-commerce operator's warehouse as their principal place of business. 

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.

Who can use the simplified GST registration route?

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.