Bank Account Updation mandatory in GST Registration else Deactivated

Important Update for taxpayers as Bank Account Updation is now mandatory. As per Rule 10A of the CGST Rules 2017, it is compulsory to mention and update Bank Account on the GST Portal. Failing to do so, might result in the deactivation of GST Registration. Therefore, In this article, we will read about this update in detail. We will also read about How to add a bank account in GST registration details.

Bank Account Updation mandatory in GST Registration else Deactivated

According to regulation 10A, after receiving the certificate of registration in Form GST REG-06 and the GSTIN (Goods and Service Tax Identification Number), the newly registered taxpayer must provide bank account information.

The enrolled taxpayer must provide the above-mentioned bank account information by the earliest of the following dates:

• Within 45 days after the date on which the registration was granted; or
• Within the timeframe specified in section 39 of the Central Goods and Service Tax Act for filing a return.

However, rule 10A also gives some exemptions for bank account updation.

Exemptions to Rule 10A 

The following persons are not required to update their bank account on GST Portal.

• Firstly, Persons who have registered as a Tax Deductor at Source under Rule 12 (section 51).
• Secondly, Persons who have been designated as Tax Collectors at Source under Rule 12 (section 52).
• Lastly, Persons who are registered according to Rule 16, i.e., those who have been given suo-moto registration by the competent official.

Note-  Every other taxpayer must update their bank account on GST Portal 45 days after getting GST Registration.

Functionality to check the status of Bank Account Updation

The government has notified the new functionality to check the status of Bank Account Updation via Notification at the official GST website.

In light of Rule 10A of the CGST Rules 2017, a new feature to monitor the status of bank account data updating for taxpayers who have accepted new registration at GST Portal but have not yet provided the same has been added.

How to add a bank account in GST Registration Account Details

If taxpayers do not update their bank accounts after registering within 45 days of their first login, the system will prompt and force them to comply with the criteria.

• Taxpayers can log in and change their bank account information via a non-core amendment by following the steps as follows.
• Firstly, Go to the taxpayer portal and log in.
• Select ‘Services’ from the drop-down menu and then Select ‘Registration’ from the drop-down menu.
• Next, Select ‘Amendment of Registration Non-Core Fields’ from the drop-down menu.
• Choose the ‘Bank Accounts’ tab. Include bank account information (Account No., IFSC, Address, Bank Account type)
• Select an authorized signatory and a location by clicking the verification tab.
• Sign application using DSC, E-sign or EVC

Afterward, you will see a success message on the display and acknowledgment will be sent to the registered email and mobile phone.

Deactivation as a result of non-compliance

If a taxpayer who is subject to the restrictions of Rule 10A fails to comply, his or her registration may be deactivated.

The rules of cancellation of registration in certain situations are addressed in Rule 21 of the Central Goods and Service Tax Rules, 2017. A new sub-clause (d) was added to rule 21.  It states that if the terms of rule 10A are violated, the person’s registration may be terminated.

New functionality on Annual Aggregate Turnover deployed on GST Portal

If you want any other guidance related to GST Registration or GST Return Filing, please feel free to talk to our business advisors at 8881-069-069.

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