Bank Account for GST Registration

The

Central Board of Indirect Taxes and Customs (CBIC), vide notification no. 31/2019 – Central Tax dated 28th 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.

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Frequently Asked Questions

Common questions about Bank Account for GST Registration.

Rule 10A of the Central Goods and Service Tax Rules, 2017 is a newly inserted rule that requires newly registered taxpayers to furnish their bank account details after receiving their GST registration certificate and GSTIN (Goods and Service Tax Identification Number).

As per Rule 10A, the registered taxpayer must submit their bank account details by the earlier of the following two dates: within 45 days from the date of registration grant or within the due date for filing the return under Section 39 of the Central Goods and Service Tax Act.

The following persons are exempted from the requirement of furnishing bank account details under Rule 10A: persons registered as Tax Deductor at Source (TDS) under Section 51, persons registered as Tax Collector at Source (TCS) under Section 52, and persons granted suo-moto registration by the proper officer under Rule 16.

If a taxpayer fails to comply with the provisions of Rule 10A, their registration is liable to be cancelled under sub-clause (d) of Rule 21 of the Central Goods and Service Tax Rules, 2017, which was recently inserted through the same notification.

Rule 21 of the Central Goods and Service Tax Rules, 2017, deals with the provisions for cancellation of registration in certain cases. A new sub-clause (d) has been added to this rule, which specifically states that non-compliance with the provisions of Rule 10A can lead to the cancellation of the taxpayer's registration.

No, it is not mandatory for all registered taxpayers to furnish bank account details under Rule 10A. The requirement is specifically for newly registered taxpayers, and certain categories of taxpayers are exempted from this rule.

The purpose of requiring bank account details from newly registered taxpayers under Rule 10A is not explicitly stated in the article. However, it is likely intended to facilitate the smooth flow of GST payments and refunds for these taxpayers.

The article does not provide specific details on whether a taxpayer can furnish multiple bank account details under Rule 10A or if they are required to provide only a single bank account.

No, the article explicitly states that Rule 10A applies to "newly registered taxpayers," indicating that it does not apply to taxpayers who were already registered before the introduction of this rule.

The article does not mention any specific penalty or fine for non-compliance with Rule 10A, apart from the cancellation of registration as per the newly inserted sub-clause (d) of Rule 21.