GST

Bank Details for GST Registration

This article highlights the rules associated with the newly introduced regulation 10A, as well as the consequences that the taxpayer must face in the event of non-compliance with the same.

Did you know that the Central Board of Indirect Taxes and Customs has made it required by law for new GST registrants to furnish bank account information within a certain time frame? 

CBIC notified the Central Goods and Service Tax (Fourth Amendment) Rules, 2019, via notification number. 31/2019 – Central Tax dated 28 June 2019 revising the Central Goods and Service Tax Rules, 2017. Further, they have added a new regulation namely, Rule 10A to the Central Goods and Services Tax Rules, 2017, as a result of the aforementioned notification. GST Rule 10A comprises regulations relating to the provision of a bank account in order to register for GST. 

Do keep in mind that every other GST registered taxpayer must update their bank account details on the GST Portal within 45 days after receiving valid GST registration.

Introduction to Rule 10A

According to Rule 10A, a newly registered taxpayer must furnish their bank account details. This is after receiving the certificate of registration in Form GST REG-06. And the GSTIN (Goods and Services Tax Identification Number).

Likewise, bank account information must be provided by the enrolled taxpayer, within 45 days after the registration date; or within the timeframe prescribed in Section 39 of the Central Goods and Services Tax Act for filing a return.

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Rule 10A Exemptions

Rule 10A provides some exclusions. The following individuals are exempt from the requirement to update their bank account on the GST Portal.

  • Further, to begin, those who have registered as a ‘Tax Deductor at Source’ pursuant Rule 12, Section 51.
  • Second, individuals designated as ‘Tax Collectors at Source’ pursuant Rule 12, Section 52.
  • Finally, those who have registration pursuant to Rule 16, i.e., those who have been granted suo-moto registration by the competent authority.

Use our GST calculator to determine the exact amount of GST to be paid before registering for GST.

Rule 10A Compliance Step-by-Step guide

If GST registered taxpayers do not update their bank accounts details within 45 days of enrolling, the portal will prompt them to comply with the criteria underlined in Rule 10A.

  1. To begin, go to the GST portal and sign in. Select ‘Services’ from the drop-down menu, followed by ‘Registration’.
  2. Then, from the drop-down box, choose ‘Amendment of Registration Non-Core Fields‘.
  3. Click on the ‘Bank Accounts’ tab. Fill up your bank account details (such as account number, IFSC, address details, bank account type)
  4. Similarly, next click on the verification button, you can select an authorised signature and a location. Sign the application with DSC, e-sign, or EVC.
  5. A message will then appear on the screen, validating the same will be sent to the registered email and cell phone.

Rule 10A Non-Compliance

Rule 21 of the Central Goods and Service Tax Rules, 2017 addresses the rules for cancellation of registration in certain cases. Further, rule 21 now includes a new sub-clause (d) which goes on to state that if the requirements of rule 10A are ignored. An individual’s registration may even have a cancellation. Likewise, this clearly goes to show that if a taxpayer who is subject to Rule 10A’s fails to comply, their registration may be terminated.

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