GST Registration Auto Suspension Under Rule 10A: Everything You Need to Know

According to the new advisory issued by the GST Network (GSTN), the system can now auto-suspend GST registrations of taxpayers who fail to provide bank account details within 30 days from the date of GST Registration. This reform has been implemented under Rule 10A and has a direct effect on all the businesses that are newly registered.

This change is focused on enhancing compliance and avoiding misuse of GST Registrations. This guide is a clear explanation of what the rule means and what taxpayers have to follow.

Rule 10A: Furnishing of Bank Accounts is mandatory.

Rule 10A of the CGST Rules provides that all registered taxpayers are required to add their valid business bank account details on the GST Portal within:

30 days of GST Registration, or
Before the submission of their first GST return (GSTR-1 or GSTR-3B)

Whichever is earlier.

A valid bank account implies that it should be a bank account under the name of the business (trade name/legal name) and not that of the promoter's personal account.

Auto-Suspension of GST Registration.

Failure to update bank account details by a taxpayer within the given time will now result in the system:

Auto-suspend the GST Registration. The suspension order can be viewed at: Services > User Services > View Notices and Orders.
Show an information message/notice on the dashboard of the taxpayer.
Limit the filing of returns, e-way bills, and other GST services.

This suspension continues until a legitimate bank account is provided.

How to Add Bank Account Details?

Bank details can be updated by the taxpayers by navigating to

Services → Registration → Amendment of Registration → Non-Core Fields → Bank Accounts

Documents Required:

Bank statement
First page of the passbook
Cancelled cheque containing a pre-printed name.

After the submission, the application is confirmed either digitally or by the jurisdictional officer (if necessary).

Automatic Dropping of Cancellation Proceedings

Previously, failure to furnish bank account details led to cancellation according to Rule 21.
Now, GSTN has clarified that after the taxpayer provides the details of the bank accounts, cancellation proceedings will be dropped automatically by the system.

Status will return to “Active”

There is no separate response or visit to the officer required unless manual verification is activated.

Manual “Drop Proceedings” Option.

Where the system fails to drop the cancellation notice automatically, the jurisdictional officer may choose to manually:

Check the bank account update.
Abandon the proceedings of cancellation.
Restore GST Registration

This will make sure that no taxpayer will have to go through unnecessary compliance hurdles.

Special Cases & Exemptions

Auto-suspension may not affect some of the categories, including:

Government departments
UN bodies
Embassies
Individuals exempt from filing returns.

Nonetheless, a majority of regular taxpayers, startups, MSMEs, and small traders must comply strictly.

Practical Impact on Taxpayers.

This rule has an impact on businesses in various ways:

Hinders the misuse of GST Registration for fake invoicing.
Maintains compliance of genuine taxpayers.
New businesses are required to be quick when opening a bank account.
Eliminates subsequent delays in filing returns or claiming GST Refund.

When registering a business, the businesses are supposed to open and update their bank account.

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With Rule 10A now triggering auto-suspensions for missing bank details, even a small delay can disrupt refunds, credit flow, and business operations.

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Conclusion

The GST compliance is stricter and transparent as a result of the new auto-suspension mechanism under Rule 10A. Those taxpayers who do not revise their bank accounts risk automatic suspension, a halt in business operations, and penalties. Providing the bank details promptly has become an important and early requirement after the registration of the GST.

Official Advisory link: https://services.gst.gov.in/services/advisoryandreleases/read/641