The Goods and Services Tax (GST) regime in India has seen a significant push towards increasing transparency and compliance.
One of the most important recent changes is the introduction of Rule 10A under the CGST Rules, which mandates that taxpayers must provide their bank account details on the GST portal.
This blog explores the latest advisory on the matter, outlining how to update bank account details under GST, why this is important for businesses, and the consequences of non-compliance.
It also provides a step-by-step guide to help you navigate this process and avoid disruptions in your business.
Understanding the Regulatory Mandate
What Rule 10A Requires
Rule 10A of the CGST Rules, 2017 stipulates that every GST-registered person must provide their bank account details within 30 days of receiving GST registration or before filing their first outward supply return.
If these details are not submitted within this time frame, the GST registration may be suspended, which can severely disrupt business operations.
This rule is part of the government's efforts to link bank account details with GST registrations to minimize fraud, track transactions, and ensure seamless processing of refunds.
By linking business accounts to GST registration numbers, tax authorities can ensure that the GST refunds and input tax credits are routed to the right accounts.
Who is Exempt from Rule 10A?
While this rule applies to most businesses, certain categories of taxpayers are exempt from this requirement:
- TDS (Tax Deducted at Source) deductors
- TCS (Tax Collected at Source) collectors
- Suo-moto registrants (registrations initiated by tax authorities)
If you fall under any of these categories, you are not required to update your bank account details under Rule 10A. However, it’s always a good idea to verify your GST registration status to ensure you’re not unintentionally out of compliance.
Consequences of Non-Compliance
Suspension of GST Registration
Failure to update your bank account details within the prescribed 30-day period can lead to suspension of your GST registration.
This means you will be unable to file GST returns, issue invoices, or claim input tax credits (ITC), effectively hindering your business operations. Suspension can also result in financial penalties, as you will not be able to receive GST refunds.
Cancellation of Registration
If the suspension is not addressed within a stipulated period, GST authorities may initiate cancellation proceedings under Section 29 of the CGST Act. Once your GST registration is cancelled, it becomes very difficult to reinstate it, which can disrupt your entire supply chain and make you ineligible for ITC or refunds.
Practical Business Impact
Not having valid bank account details linked to your GST registration can affect:
- Inability to issue GST invoices
- Inability to claim GST refunds
- Interruptions in the input tax credit chain may affect both operational cash flows and working capital.
- Loss of reputation as non-compliance is flagged by GST authorities.
For businesses relying on timely refunds or credit for operations, this can be detrimental.
Step-by-Step Guide to Update Bank Account Details on the GST Portal
Now that we understand why this mandate is crucial, let’s walk through how to update your bank account details on the GST portal. Follow these steps to ensure a smooth and timely submission.
Preliminary Checklist
Before you begin the process, make sure you have the following:
- GST Portal login credentials
- Bank account details (account number, IFSC code, and bank branch name)
- Supporting document: A cancelled cheque or bank statement showing the account details (clear scan/photo)
- GSTIN number associated with your registration
Step-by-Step Process
1. Login to the GST Portal
- Visit the official GST portal at www.gst.gov.in.
- Enter your GSTIN and password to log in.
2. Go to the Registration Section
- On the Dashboard, navigate to Services → Registration → Amendment of Registration (Non-Core Fields). This section allows you to update or amend details that are non-critical to your registration, such as your bank account information.
3. Select Bank Account Details
- Click on the Bank Account Details tab.
- Here, you can either Add New bank account details or Edit existing details, depending on whether you are submitting new information or updating current records.
4. Fill in the Bank Account Details
- Enter the following:
- Bank account number
- Bank name
- IFSC code
- Account type (Savings/Current)
- If updating existing details, ensure the new information is accurate and matches the supporting documents.
5. Upload Supporting Document
- Upload a clear scanned copy of a cancelled cheque, the first page of your bank passbook, or a bank statement that verifies the bank account in your name.
6. Save and Validate
- Click Save after filling in the details.
- Validate your bank account by clicking the Validate Account Details button. This ensures that the bank details you’ve entered match the records with the bank.
7. Verify and Submit
- Verify all information to ensure it is accurate.
- After reviewing, click on Submit to complete the process.
- If required, sign the application digitally using your Digital Signature Certificate (DSC) or EVC (OTP) if applicable to your business entity type.
8. Track Status
- After submission, you will receive an ARN (Application Reference Number). You can track the status of your submission through the Track Application Status feature on the GST portal.
- Once approved, the status will reflect as verified on the GST portal.
Action Plan for Businesses & Taxpayers
As a GST-registered business, it is critical that you:
- Submit your bank account details within 30 days of registration or before filing your first outward supply return.
- Verify the accuracy of the details you provide to avoid rejection or delays.
- Track the status of your application through the ARN, and ensure that the bank account is listed as valid in the GST portal.
- Maintain updated records of your GST submissions and supporting documents for future reference.
- Act quickly if you are flagged for non-compliance; failure to comply could lead to registration suspension or cancellation.
Staying Compliant and Avoiding GST Registration Disruptions
Furnishing your bank account details under Rule 10A of the CGST Rules is not just a compliance requirement; it's essential for keeping your GST registration active, processing GST refunds, and maintaining business continuity.
By following the step-by-step guide provided in this blog, you can ensure that your business stays in good standing with the GST authorities, thereby avoiding penalties, suspension, or cancellation of your GST registration. Act now to prevent unnecessary disruptions in your business and safeguard your compliance.
FAQs
Q1. What Happens if I Miss the 30-Day Deadline?
If you fail to submit your bank details within the 30-day window, your GST registration may be suspended. This can have serious consequences on your ability to continue business operations.
Q2. Can I Update Bank Details After the Deadline?
Yes, you can update your bank details after the deadline, but the risk of suspension increases if the authorities flag your GST registration for non-compliance. It’s essential to act swiftly to avoid unnecessary disruptions.
Q3. Is There a Monetary Penalty for Late Submission?
Currently, there is no direct monetary penalty for failing to update bank account details, but the risk of registration suspension and cancellation outweighs the potential fines.
Q4. How Many Bank Accounts Can I Link to My GSTIN?
You can add up to 10 bank accounts under a single GSTIN. This is particularly useful if you manage multiple accounts for different purposes, such as operational and refund accounts.
Q5. Does the Bank Account Have to be in the Name of the Registered Person?
Yes, the bank account must be in the name of the registered entity (the same as the GST registration name). This ensures that the GST refunds and credits are routed correctly.
