According to the latest updates, from today, 1 November 2026, small sellers who supply only through e-commerce platforms can register for GST in another state by declaring the platform’s warehouse there as their principal place of business. The Central Board of Indirect Taxes and Customs (CBIC) inserted Rule 14B into the Central GST rules through Notification No. 05/2026 Central Tax, dated 26 October, after the GST Council approved the change on 8 October. The route is open to sellers whose tax on business to business (B2B) supplies stays within ₹2.5 lakh a month, with one such registration per state for each PAN (Permanent Account Number). The seller must hold a regular registration in a home state, where Aadhaar authentication and physical verification take place.
This development matters because a seller no longer needs an office in every state where a platform stores its goods. The e-commerce operator must give consent within seven working days or the application stops, and if the operator later withdraws consent, the seller has 30 days to act or the registration is treated as cancelled, according to CA Sansaar. CNBC TV18, carrying a PTI report, says around 9.5 lakh small sellers could benefit.
In our expert opinion, the rule shifts control towards large marketplaces that run fulfilment warehouses, because each seller’s out of state registration now depends on their consent. Platforms with wide warehouse networks gain, while independent third party logistics (3PL) providers and small rented godowns serving these sellers may lose some regional stock. Coverage misses that the platform must also appoint an authorised representative in every state, which adds compliance work at warehouse level. We expect at least one large marketplace to announce a formal onboarding scheme for Rule 14B sellers by 31 January 2027, and we hold this view with medium confidence.
This is important for our readers because platform fulfilment centres could start holding more stock from small sellers based in other states. If you sell through a marketplace, check this week whether your monthly B2B tax stays under ₹2.5 lakh and ask your platform how it will handle consent requests. If you run a warehouse used by a platform, confirm who will act as its authorised representative in your state.
Sources: Press Information Bureau, 9 October 2026, GST registration FAQ; CA Sansaar, 28 October 2026, CGST Amendment Rules 2026, Rule 14B; CNBC TV18 (PTI), 28 October 2026, GST rule change from November 1; Business Standard, 8 October 2026, GST Council decision on seller warehouses
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