The GST Network (GSTN) has issued an advisory to GST-registered businesses to furnish their bank account details within 30 days of grant of GST registration or before the due date of filing GSTR-1/IFF, whichever is earlier, to avoid suspension of their GSTIN.
Why is it important to submit bank account details?
According to the GST law, all registered taxpayers are required to furnish details of their bank account/s within 30 days of the grant of registration or before the due date of filing GSTR-1/IFF, whichever is earlier. GSTR-1 filed by a company contains statement of outward supplies, while Invoice Furnishing Facility (IFF) can be availed by businesses opting for Quarterly Returns with Monthly Payment (QRMP) scheme under GST.
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising finance ministers from all states, had decided in July 2024 that businesses which do not furnish details of a valid bank account will be barred from filing GSTR-1 or using IFF.
What will happen if bank account details are not submitted?
GSTN has said that a new functionality is being developed as per which taxpayers whose registration is suspended for non-submission of bank account details would be intimated through Form REG-31. Such businesses would also be debarred from filing any further GSTR-1/IFF.
If taxpayers update their bank account details in response to the intimation in Form REG-31, the suspension will be automatically revoked. If the bank account details are not updated even after 30 days of issuance of Form REG-31, the registration after suspension may also be taken up for cancellation process by the tax officer, GSTN said.
How to submit bank account details?
Taxpayers can submit their bank account details through the GST portal by logging in with their credentials and navigating to Services > Registration > Amendment of Registration Non-Core Fields. They can add up to 10 bank accounts under the tab ‘Bank Accounts’. They need to provide the following information for each bank account:
- Bank Account Number
- Account Type
- IFSC
- Bank Name
- Address of Bank Branch
- Document Proof (such as cancelled cheque, bank statement or passbook)
After saving the details, they need to verify them using digital signature certificate (DSC) or electronic verification code (EVC) and submit the application.