Furnishing of Bank Account details mandatory to avoid GST cancellation

As per the CGST Act and the Rules thereunder, all registered taxpayers are required to furnish the details of their bank accounts within 30 days of the grant of registration or before the due date of filing GSTR-1/IFF, whichever is earlier. Reference is made to the amended Rule 10A of the CGST Rules, 2017, which states as under:

“After a certificate of registration in FORM GST REG-06 has been made available on the common portal and a Goods and Services Tax Identification Number has been assigned, the registered person, except those who have been granted registration under rule 12 or, as the case may be rule 16, shall within a period of thirty days from the date of grant of registration, or before furnishing the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using invoice furnishing facility, whichever is earlier, furnish information with respect to details of bank account on the common portal.”

In this regard, the GST Department has issued an advisory requesting all taxpayers who have not yet furnished their bank account details on the GST portal, to furnish the same, in order to avoid disruption in their business activities as non-declaration of the same may lead to subsequent suspension and cancellation of the GSTIN.

For the same, the Government is planning to deploy a new functionality with the following features:

1. Failure to furnish the bank account in the stipulated time would result into following:

a) Taxpayer registration would get suspended after 30 days and intimation in FORM REG-31 will be issued to the Taxpayer

b) Taxpayer would be debarred from filing any further GSTR-1/IFF

2. Revocation of Suspension: If the taxpayer updates their bank account details in response to the intimation in FORM REG-31, the suspension will be automatically revoked.

3. Cancellation of Registration: If the bank account details are not updated even after 30 days of issuance of FORM REG-31, the registration after suspension may also be taken up for cancellation process by the Officer.

It is therefore advised that if your bank account details are yet to be updated on the GST portal, the same should be updated at the earliest to avoid suspension of the GST registration.