A considerable number of newly registered GST applicants remain unaware of the obligation to promptly update their bank account information. Nowadays, banks have made it a prerequisite to acquire a GST registration before allowing individuals, sole proprietors, and partnerships to open accounts. Consequently, the mandatory submission of bank details during the GST registration process has been eliminated. However, it is imperative to remember that bank account information must be promptly updated on the GST Portal subsequent to receiving GST registration. The government has mandated the provision of bank account details on the GST portal within 45 days of registration or the due date of the first GSTR 3B, whichever comes earlier. This obligation has been stipulated in Rule 10A of the CGST Rules 2017.
From the information presented above, it becomes apparent that bank details must be diligently updated on the Common GST Portal within 45 days of obtaining registration or the due date of the first GSTR 3B, depending on whichever occurs first. Here are a few crucial points to consider when updating bank details on the portal after receiving GST registration. These points will be addressed through a series of commonly asked questions (FAQs):
Q1: Is it necessary for the bank account name to match the name of the registrant?
Ans: Indeed, the bank account being updated on the GST Portal should correspond to the name under which GST registration was obtained, in other words, the registered individual’s name.
Q2: Must the PAN be linked to the bank account being updated?
Ans: Yes, in contemporary times, all bank accounts are linked to the PAN. It is worth noting that the bank account must be held in the name of the registered person, not under any other individual’s name, such as a partner of a firm or a director of a company. Therefore, it is imperative that the bank account is linked to the PAN of the person who has been granted registration. Furthermore, if the registration pertains to a proprietorship, the proprietor’s PAN must also be linked with their Aadhaar number.
Q3: Are current account details mandatory on the GST portal?
Ans: No, the option to provide details of a savings bank account, cash credit account, or any other type of bank account is available on the GST portal. The portal offers the flexibility to upload details of various account types.
Q4: Where should I furnish the bank account details after obtaining GST registration?
Ans: The process of updating bank details entails accessing the “Registration Tab” on the common GST portal of the registered person and navigating to the sub-tab labeled “Amendments of Registration non-core fields.”
Q5: What are the consequences of failing to provide the required details within 45 days?
Will a notice be issued, or will the GST number be canceled directly? Ans: Failure to furnish bank account details within the designated 45-day period will result in the issuance of a show cause notice by the department. Should you fail to respond within the stipulated time frame or provide an unsatisfactory reply while neglecting to update the bank details on the portal, the department reserves the right to cancel your registration. During this period, the department may temporarily suspend your GST number, thereby impeding your ability to generate e-way bills, file returns, and engage in related activities.
Q6: Are there any document uploads required on the GST portal when updating bank details?
Ans: Absolutely, you are required to upload either a copy of a canceled cheque bearing the taxpayer’s name, a bank statement, or the initial page of a bank passbook.
Q7: Are there any dealers exempted from complying with Rule 10A regarding registration?
Ans: Indeed, dealers granted registration under Rule 12 or Rule 16, such as those with temporary registration or registration for individuals liable to deduct TDS, are not bound by the provisions of Rule 10A concerning bank account updates on the portal.
Q8: Can bank details be changed at a later date following the initial update?
Ans: Certainly, bank details can be modified in the future by using the same “Amendments of Registration non-core fields” sub-tab within the “Registration Tab” on the common GST portal of the registered person.
Conclusion,
It is of utmost importance for individuals who have newly registered for GST to acknowledge the necessity of promptly updating their bank account details. Failure to comply within the prescribed time limit may result in the receipt of a show cause notice, cancellation of GST registration, and temporary suspension of the GST number. It is crucial to ensure that the bank account name corresponds to the registrant’s name and that the PAN is linked to the bank account. The process of updating bank account details involves utilizing the appropriate sub-tab and providing the required documents, such as a canceled cheque, bank statement, or bank passbook. However, it is important to note that dealers granted registration under specific rules, such as temporary registration or registration for individuals liable to deduct TDS, are exempt from this requirement. Staying informed about these guidelines and maintaining accurate and up-to-date bank account details on the GST portal is essential to avoid any inconvenience or penalties in the future.
