GSTN Advisory: Register taxpayers furnish bank details per Rule 10A, CGST Rules.

In a recent development, the Goods and Services Tax Network (GSTN) has released Advisory No. 623 on January 22, 2024, shedding light on the mandatory requirement for registered taxpayers to furnish their bank account details under Rule 10A of the Central Goods and Services Tax Rules, 2017. This SEO article aims to provide a comprehensive overview of the advisory, emphasizing key points, consequences of non-compliance, and the upcoming functionality that taxpayers need to be aware of.

 

Table Section
1. Introduction
2. Understanding the Mandate
3. Consequences of Non-Compliance
4. Revocation and Cancellation Procedures
5. Upcoming Functionality Features
6. Actionable Steps for Taxpayers
7. FAQs
8. Conclusion

 

Understanding the Mandate:

Under the provisions of the CGST Act, 2017, and the corresponding Rules, registered taxpayers are now obligated to provide details of their bank accounts within 30 days of registration or before the due date of filing GSTR-1/IFF, whichever comes first.

 

Consequences of Non-Compliance:

The advisory underscores the importance of adhering to this mandate, outlining severe consequences for non-compliance. After the 30-day window, failure to furnish bank account details will result in the suspension of taxpayer registration. An intimation in FORM REG-31 will be issued, and the taxpayer will be debarred from filing any further GSTR-1/IFF.

 

Revocation and Cancellation Procedures:

To address the impact of suspension, a new functionality is in the works. Taxpayers can automatically revoke the suspension by updating their bank account details in response to the FORM REG-31 intimation. However, if these details aren't updated within 30 days, the registration may face the cancellation process.

 

 

Upcoming Functionality Features:

The upcoming functionality is designed to streamline the process with several features, including:

1. Automatic suspension of registration for non-compliance.
2. Debarment from filing GSTR-1/IFF.
3. Automatic revocation of suspension upon updating bank account details.
4. The possibility of cancellation if details are not updated post-suspension.

 

Actionable Steps for Taxpayers: 

In light of this advisory, it's imperative for registered taxpayers to promptly furnish their bank account details if they haven't done so already. This proactive approach is critical to avoiding disruptions in business activities and potential suspension of GSTIN.

 

(FAQs)

Q1: What is the recent GSTN advisory regarding bank account details?

A1: The Goods and Services Tax Network (GSTN) issued Advisory No. 623 on January 22, 2024, emphasizing the mandatory requirement for registered taxpayers to furnish their bank account details under Rule 10A of the Central Goods and Services Tax Rules, 2017.

Q2: When are registered taxpayers required to provide their bank account details?

A2: Taxpayers must furnish their bank account details within 30 days of the grant of registration or before the due date of filing GSTR-1/IFF, whichever is earlier.

Q3: What are the consequences of not complying with the bank account details submission mandate?

A3: Failure to provide bank account details within the stipulated time will result in the suspension of taxpayer registration after 30 days. An intimation in FORM REG-31 will be issued, and the taxpayer will be debarred from filing any further GSTR-1/IFF.

Q4: Can the suspension of taxpayer registration be revoked?

A4: Yes, if the taxpayer updates their bank account details in response to the FORM REG-31 intimation, the suspension will be automatically revoked.

Q5: What happens if bank account details are not updated post-suspension?

A5: If bank account details are not updated within 30 days after the issuance of FORM REG-31, the registration may be taken up for cancellation by the Officer.

Q6: What features are included in the upcoming functionality mentioned in the advisory?

A6: The upcoming functionality includes automatic suspension of registration for non-compliance, debarment from filing GSTR-1/IFF, automatic revocation of suspension upon updating bank account details, and the possibility of cancellation if details are not updated post-suspension.

Q7: What action should registered taxpayers take in response to the advisory?

A7: Registered taxpayers are strongly advised to promptly furnish their bank account details to avoid disruptions in business activities and potential suspension of GSTIN.

Q8: How can taxpayers stay informed about such advisories in the future?

A8: Taxpayers should regularly check official GSTN communications, government portals, and related platforms for updates on advisories and regulatory changes.

Q9: Is there a specific form for updating bank account details in response to the advisory?

A9: Taxpayers are expected to update their bank account details in response to the intimation in FORM REG-31.

Q10: Are there any exemptions to the requirement of furnishing bank account details?

A10: The advisory does not mention exemptions. All registered taxpayers are advised to comply with the bank account details submission mandate within the specified

 

Conclusion: 

Staying informed about regulatory changes is crucial for businesses, and the recent advisory from GSTN highlights the significance of complying with the bank account details submission mandate. Businesses should take immediate action, providing the necessary information to ensure adherence to timelines and prevent adverse consequences on their GST registration and filing processes.