A technical issue on the GST common portal, operated by Infosys under the GSTN framework, has sparked concern among taxpayers after the system allegedly failed to enable withdrawal from Rule 14A despite eligible applicants fulfilling the statutory requirement of filing three consecutive months’ returns.

Several taxpayers have reported that even after complying with the conditions prescribed under Rule 14(5) of the Central Goods and Services Tax Rules, 2017, the functionality to file FORM GST REG-32 for withdrawal is not operational on the portal.

What the Law Provides?

Under Rule 14(5), a registered person intending to withdraw from the option exercised under sub-rule (1) is required to file an application in FORM GST REG-32 on the common portal, either directly or through a Facilitation Centre.

The proviso to the rule stipulates that such application cannot be filed unless:

• Returns for a minimum period of three months have been furnished (where the application is filed before April 1, 2026);
• Returns for at least one tax period have been furnished (where filed on or after April 1, 2026); and
• All returns due from the effective date of registration till the date of application have been filed.

The rule further clarifies that withdrawal is permissible only where no proceedings under Section 29 of the CGST Act (cancellation of registration) have been initiated.

Taxpayers Allege Portal Inconsistency

Despite meeting the return-filing conditions, taxpayers claim that the GST portal does not permit submission of the withdrawal application. A public grievance circulated on social media questioned whether technological limitations are overriding statutory provisions.

“Even after filing three consecutive months’ returns, withdrawal from Rule 14A is still not enabled on the GST portal, which is clearly allowed as per Rule 14(5). Genuine taxpayers are suffering due to technical failures,” a taxpayer stated while tagging the Central Board of Indirect Taxes and Customs (CBIC) and GSTN officials.

Compliance vs. Technology

The issue has reignited concerns over the recurring mismatch between legislative provisions and portal implementation. Tax professionals point out that when statutory eligibility conditions are satisfied, denial of functionality on the portal may effectively curtail a taxpayer’s legal right.

Experts say that if the glitch persists, affected taxpayers may have to:

• Raise grievances through the GST grievance redressal mechanism;
• Escalate the issue before jurisdictional officers; or
• Seek judicial intervention if administrative remedies fail.

Call for Immediate Resolution

With April 1, 2026 marking a transition in the minimum return requirement under the rule, stakeholders emphasize the urgency of aligning portal functionality with statutory mandates to avoid unnecessary compliance hardship.

As of now, there has been no official clarification from CBIC, GSTN, or Infosys on the reported issue.

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