Introduction
Bank account details are a critical component of GST registration. They are used for the processing of refunds, the reconciliation of tax payments, and the verification of the business’s financial transactions. When a business changes its bank account — whether due to a change in the primary operating bank, the closure of an existing account, or a change in the IFSC or branch code — it must update its GST registration to reflect the new details.
This guide explains the procedure for adding or updating bank account details in GST registration, the mandatory requirement under Rule 10A of the CGST Rules, and the consequences of non-compliance.
Legal Framework: Rule 10A of the CGST Rules
Mandatory Furnishing of Bank Account Details
Rule 10A of the CGST Rules, 2017 mandates that every registered person must furnish the details of a bank account in their name on the GST portal. The rule requires that the bank account details be furnished:
- Within 30 days from the date of grant of registration, or
- Before furnishing the details of outward supplies in FORM GSTR-1 or the Invoice Furnishing Facility (IFF), whichever is earlier.
Exemptions from Rule 10A
The following categories of registered persons are exempt from the mandatory requirement of furnishing bank account details:
- Tax Collectors (TCS)
- Tax Deductors (TDS)
- Suo Moto registrations
Consequences of Non-Compliance
Non-compliance with Rule 10A can lead to suspension of GST registration. The GSTN has issued advisories confirming that the GST portal will auto-suspend registrations where bank account details are not furnished within the prescribed timeline.
Understanding Non-Core Amendment for Bank Details
A change in bank account details is a non-core field amendment. It is auto-approved by the GST portal without requiring approval by the proper officer. This streamlined process recognises that bank details do not affect the fundamental identity or structure of the registered entity.
Procedure for Adding a Bank Account
Step 1: Login to the GST Portal
Visit https://www.gst.gov.in and log in using your GSTIN credentials.
Step 2: Navigate to Amendment of Registration Non-Core Fields
Go to Services > Registration > Amendment of Registration Non-Core Fields.
Step 3: Select the Bank Accounts Tab
Select the Bank Accounts tab. The system will display the existing bank accounts, if any.
Step 4: Click on “Add New”
Click on the Add New button to add a new bank account.
Step 5: Enter the Bank Details
Enter the required bank details:
- Bank Account Number
- Type of Account (Savings/Current)
- IFSC Code
- Bank Name and Branch
Step 6: Upload Supporting Documents
Upload any one of the following supporting documents:
- Cancelled Cheque (with the business name printed on it, preferably)
- Bank Statement (showing the account holder’s name, account number, and IFSC)
- First Page of Passbook (showing the account holder’s name, account number, and IFSC)
Step 7: Save and Submit
Click Save and then submit the application using:
- DSC (Digital Signature Certificate) for companies and LLPs
- EVC (OTP-based) for proprietors and others
Procedure for Updating Existing Bank Account Details
Step 1: Login to the GST Portal
Log in to the GST portal using your credentials.
Step 2: Navigate to Amendment of Registration Non-Core Fields
Go to Services > Registration > Amendment of Registration Non-Core Fields.
Step 3: Select the Bank Accounts Tab
Select the Bank Accounts tab.
Step 4: Click on “Edit”
Click on the Edit button next to the bank account you wish to modify.
Step 5: Update the Bank Details
Update the required details. Add the date of amendment and the reason for change.
Step 6: Upload Supporting Documents
If required, upload updated supporting documents.
Step 7: Save and Submit
Click Save and submit the application.
Maximum Number of Bank Accounts
A registered person can add a maximum of 10 bank accounts under a single GSTIN. The primary bank account is used for the processing of refunds.
When is Bank Account Amendment Required?
Bank account amendment is required in the following situations:
- Change in Primary Operating Bank: The business shifts its banking operations to a new bank.
- Closure of Existing Account: The existing bank account is closed, and a new account is opened.
- Change in IFSC or Branch Code: The IFSC or branch code of the existing bank account changes due to a bank merger or restructuring.
- Addition of a New Account: The business opens an additional bank account for specific purposes.
- Compliance with Rule 10A: The business did not furnish bank account details at the time of registration and is now complying with the requirement.
Documents Required for Bank Account Amendment
- Cancelled Cheque of the new bank account
- Bank Statement showing the account holder’s name, account number, and IFSC
- First Page of Passbook showing the account holder’s name, account number, and IFSC
- Reason for Change (to be entered in the application)
Timeline for Bank Account Amendment
- Application: There is no specific timeline for filing a bank account amendment. However, it is advisable to update the details as soon as the change occurs.
- Processing: Non-core amendments are auto-approved by the GST portal upon submission.
- Effective Date: The amendment is effective immediately upon submission.
Consequences of Not Updating Bank Account Details
- Suspension of Registration: Non-furnishing of bank account details within the prescribed timeline under Rule 10A can lead to suspension of GST registration.
- Delay in Refund Processing: Refunds are processed to the bank account registered on the GST portal. If the details are outdated, refunds may be delayed or rejected.
- Compliance Issues: Outdated bank details can lead to mismatches in the reconciliation of tax payments.
- Notice from Department: The department may issue a notice seeking clarification on the bank account details.
Best Practices for Bank Account Amendment
- Update Promptly: Update the bank account details as soon as the change occurs.
- Ensure Accuracy: Ensure that the bank account number, IFSC code, and other details are accurate.
- Upload Legible Documents: Ensure that the cancelled cheque or bank statement is legible.
- Maintain Records: Maintain a record of all amendments made to the bank account details.
- Verify the Updated Details: After submission, verify that the updated details are reflected on the GST portal.
Conclusion
Updating bank account details is a non-core amendment that is auto-approved by the GST portal. However, it is a critical compliance requirement under Rule 10A. Non-compliance can lead to suspension of registration and disruption of business operations. Timely action is essential to ensure that the business’s GST records remain accurate and compliant.
Need to update your GST bank account details? Anuj Desai & Associates provides expert assistance with GST registration amendments and compliance. Contact us today.
Contact us:
- Email: office@anujdesaiassociates.com
- Phone: 9619456656
- Website: https://anujdesaiassociates.com
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