New GST Registrants – Furnish bank details on GST Portal (Rule 10A)

Many new GST registrants do not know they have to update their bank account details after getting their GST Registration within prescribed time limit.

These days the banks do not open the accounts unless you take a GST registration especially in case of individuals/proprietorships and partnerships. This is one of the primary reasons bank details are not mandatorily required while applying for GST Registration.

Bank details are required to be updated on the GST Portal after getting your GST registration.

Government has made it compulsory to furnish bank account information on GST portal within 45 days of grant of registration or the due date of first GSTR 3B, whichever is earlier by inserting Rule 10A of the CGST Rules’ 2017.

Rule 10A of the CGST Rules’2017

Rule 10A: Furnishing of Bank Account Details

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 as soon as may be, but not later than forty five days from the date of grant of registration or the date on which the return required under section 39 is due to be furnished, whichever is earlier, furnish information with respect to details of bank account [which is in name of the registered person and obtained on Permanent Account Number of the registered person], or any other information, as may be required on the common portal in order to comply with any other provision.]

[Provided that in case of a proprietorship concern, the Permanent Account Number of the proprietor shall also be linked with the Aadhaar number of the proprietor.] 

From the reading of the above it is clear that the bank details need to be updated on Common GST Portal within 45 days of grant of registration or the due date of first GSTR 3B, whichever is earlier.

There are few other things to be kept in mind while updating Bank details on the portal after grant of your GST Registration which are given as under in the form of FAQs.

Q1. Does the bank account name need to be in the name of the registrant?

Ans: Yes, the bank account to be updated on the GST Portal needs to be in the name in which GST registration is taken/granted i.e in the name of the registered person.

Q2. Does the PAN need to be linked to the Bank account to be updated?

Ans: Yes, these days all bank accounts are linked to the PAN. The important thing to be noted here that bank account should be in the name of the registered person and not in any other person’s name like partner of the firm, director of the company etc. therefore the bank should be linked to the PAN of the person in whose name registration is granted.

It is also to be noted that if the registration is granted to a proprietorship, the PAN of the proprietor shall also be linked with the Aadhaar number of the proprietor

Q3. Is it mandatory to furnish current account details on GST portal?

Ans: No, you can furnish details of Savings bank or Cash credit account or other bank accounts also on GST portal. The portal gives option of uploading saving bank account details or cash credit or other account details.

Q4. Where do I have to furnish details bank account after grant of GST registration?

Ans: Bank details need to be updated through ‘Amendments of Registration non-core fields’ sub tab in the ‘Registration Tab’ on the common GST portal of the registered person.

Q5. What if I fail to furnish details within 45 days, will I receive notice for the same or directly my GST number will be cancelled?

Ans: You will receive show cause notice from department for not furnishing bank account details. If you fail to reply to the SCN within prescribed time or the reply furnished by you is not satisfactory and you have not updated the bank details on the portal, the department may cancel your registration. But meanwhile, department may suspend your GST number so that you will not be able to generate e-way bill, file returns etc.

Q6. Do we need to upload any documents on GST portal for updating bank details?

Ans: Yes, you need to upload either Copy of cancelled cheque having name of Taxpayer or bank statement or first page of bank passbook.

Q7. Are there any dealers who do not have to comply with the provisions of this Rule 10A on getting registration?

Ans: Yes, the dealers granted registration under rule 12 or rule 16 i.e persons granted temporary registration and registration for persons liable to deduct TDS are not covered with the provisions of this Rule 10A for updation of bank account on the portal.

Q8. Can we change the bank details in future after updating?

Ans: Yes, we can change the bank details in the future through the same ‘Amendments of Registration non-core fields’ sub tab in the ‘Registration Tab’ on the common GST portal of the registered person.

(The author is a Chartered Accountant and can be contacted at [email protected] or [email protected] or Mobile: +91-9953199493)