Mandatory Furnishing of Bank Account Details Under Rule 10A

The GST Network (GSTN) has made a significant announcement to remind taxpayers that they must provide bank account information on the GST portal, as provided in Rule 10A of the CGST Rules.

This is mandatory for all registered taxpayers - excluding those registered under TCS, TDS, or suo-moto registrations- and it should be done within 30 days after registration or before filing outward supplies in GSTR-1 or IFF, whichever is earlier

The update enforces the compliance requirements and attempts to simplify the refund process, tax management, and verification of accounts and ensures that the GST Registration should not be misused for fraud against anyone.

Key Requirement Under Rule 10A

According to Rule 10A, all the taxpayers registered under GST are required to submit their valid bank account details upon which they perform business transactions. The GSTN advisory has pointed out the following conditions that exist:

The registered business entity has to be the name of the bank account.
Bank information has to be provided within the prescribed timelines upon having GST registration.
This account should be a bank account that is linked to PAN (where necessary).

The taxpayers who do not revise their bank information could experience limitations on filing returns, making e-invoices, or getting GST Refunds until compliance is met.

This regulation ensures that the registered entities are properly verified and helps in minimizing the possibility of identity abuse, false invoicing, or fraudulent application of refunds.

Action Steps for Taxpayers

The registered taxpayers are expected to update their bank account details by following the steps below:

1.Log in to the GST portal (www.gst.gov.in)

2. Navigate to:

Services → Registration → Amendment of Core Fields

3. Provide the valid business bank account information, such as:

Account Number
IFSC Code
Bank Name and Branch

4. Provide supporting documents, including:

Cancelled Cheque, or
Bank Statement, or
Passbook copy

5. Enter the amendments and authenticate DSC/EVC/Aadhaar OTP.

After the approval is done, the revised details will be registered in the GST system.

Conclusion

In the GSTN advisory under Rule 10A, the main focus is on compliance and transparency in the GST framework. Not only is furnishing valid bank account information mandatory, but also important for smooth GST operations, particularly to taxpayers who claim refunds or are filing returns, or conducting regular business transactions. Taxpayers are advised to fulfil this requirement early to avoid any disturbance in compliance with GST.

Frequently Asked Questions

1. What is Bank Detail - Rule 10A?
Rule 10A places a requirement on GST-registered taxpayers to provide valid business bank account information within a specified time upon registration.

2. What is the way to provide the bank account information in GST?
Please follow the following steps in order to update the bank details in the GST portal: Log in to the GST portal, Registration, then Amendment of Core Fields, then Update bank details, then Upload documents, then Submit with verification.

3. Then what will be the case when a bank account is not updated in the GST portal?
To ensure the completion of compliance, taxpayers can be prohibited from filing returns, requesting refunds, or creating e-invoices.