Recently, vide notification no. 31/2019 – Central Tax dated 28th June 2019, the Central Board of Indirect Taxes and Customs notified the Central Goods and Service Tax (Fourth Amendment) Rules, 2019.

With the said notification, new rule 10A was inserted into the Central Goods and Service Tax Rules, 2017. The new rule 10A deals with the requirement of furnishing of the bank account details under GST. The present article tries to explain the provisions of the new rule 10A and the consequence in case of non-compliance of the provisions of rule 10A.

Provisions of new rule 10A and its effect thereon –

Applicable to whom? –

Provisions of rule 10A applies to the newly registered taxpayer who has received a certificate of registration in Form GST REG-06 and who is assigned the Goods and Service Tax Identification Number (GSTIN).

Obligation to be fulfilled in case the provisions of rule 10A gets applicable –

In case the provisions of rule 10A get applicable, the taxpayer is required to furnish the details of the bank account.

The time limit within which the details of bank account is to be provided –

The eligible taxpayer is required to furnish the details of its bank account within earlier of the following dates –

  • 45 days from the date of the grant of the registration; or
  • Due date of furnishing of GST return as per section 39 of the CGST Act.

Categories of persons who are exempted from applicability of provisions of rule 10A –

Provisions of rule 10A doesn’t apply to the following categories of persons i.e., such persons are not mandatorily required to furnish the bank account details –

  • The persons who are registered as per rule 16 of the Central Goods and Service Tax Rules, 2017 (i.e., the persons are suo-moto registered by the proper officer).
  • The persons who are registered as per rule 12 of the Central Goods and Service Tax Rules, 2017 (i.e., the persons are registered as a person liable to deduct Tax at Source / Tax Collected at Source).

The consequence of non-compliance with the provisions of rule 10A –

Rule 21 of the Central Goods and Service Tax Rules, 2017 deals with the cases wherein registration is liable to be canceled. Vide the above referred notification, clause (d) has been inserted to rule 21 which states that in case the provisions of rule 10A are violated, the registration of such taxable person would be liable to be canceled.

Thus, if the applicable taxpayer fails to furnish the bank account details within the prescribed time limit, then, the registration of such taxpayer would be canceled.

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