Bank Account for GST Registration

The Central Board of Indirect Taxes and Customs (CBIC), vide notification no. 31/2019 – Central Tax dated 28^th June 2019, recently notified the Central Goods and Service Tax (Fourth Amendment) Rules, 2019, amending the Central Goods and Service Tax Rules, 2017. Vide the said notification, the Board inserted new rule 10A to the Central Goods and Service Tax Rules, 2017. Rule 10A of GST contains provisions relating to furnishing of bank account for GST registration. The current articles highlight the provisions attached with the newly inserted rule 10A and consequence the taxpayer needs to face in case of non-compliance with the same.

Understanding Provisions of Rule 10A –

As per rule 10A, the newly registered taxpayer is required to furnish bank account details after receiving the certificate of registration in Form GST REG-06 and after receiving the GSTIN, i.e. Goods and Service Tax Identification Number. The registered taxpayer is required to submit the said details of bank account earlier of following dates –

Within forty-five days from the date of grant of registration; or
Within the due date of filing of return under section 39 of the Central Goods and Service Tax Act.

Following are the list of persons exempted from following the provisions of rule 10A, i.e. they are not required to provide the bank account details –

The persons registered as per provisions of rule 12 as the Tax Deductor at Source (section 51).
The persons registered as per provisions of rule 12 as the Tax Collector at Source (section 52).
The persons registered as per provisions of rule 16, i.e., person who are granted suo-moto registration by the proper officer.

Consequence for non-compliance

In case the taxpayer to whom the provisions of rule 10A apply fails to comply with the same, then, the registration of such a person would be liable to be cancelled. Rule 21 of the Central Goods and Service Tax Rules, 2017 deals with the provisions of cancellation of registration in certain cases. New sub-clause (d) has been inserted to rule 21, vide the above-referred notification no. 31/2019 – Central Tax, which provides that in case of violation of provisions of rule 10A, the registration of the person would be liable to be cancelled.