GSTN Advisory: Mandatory Furnishing of Bank Account Details by Registered Taxpayers
A recent advisory from GSTN highlights a crucial update for all registered taxpayers under the GST regime. Taxpayers are now mandated to furnish their bank account details within 30 days of receiving their GST registration or before the due date of filing their GSTR-1/IFF, whichever is earlier. Failure to comply with this requirement can lead to the suspension of the GSTN, barring taxpayers from filing GSTR-1/IFF and potentially leading to the cancellation of their registration.
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Introduction
The Goods and Services Tax Network (GSTN) has issued an important advisory for all registered taxpayers, mandating the furnishing of bank account details as per the provisions of the Central Goods and Services Tax (CGST) Rules, 2017. This directive is critical to ensure uninterrupted business operations and compliance with GST regulations.
Mandatory Bank Account Details Submission
As per the CGST Act, 2017, and the corresponding rules, registered taxpayers are required to provide details of their bank accounts within 30 days of the grant of registration or before the due date of filing GSTR-1/IFF, whichever is earlier. This move is aimed at enhancing the transparency and efficiency of the GST system.
Consequences of Non-Compliance
Failure to furnish bank account details within the stipulated time frame can lead to significant consequences for taxpayers:
- Suspension of GSTN: Taxpayers who do not comply will face suspension of their GSTN after 30 days, and they will be intimated via Form REG-31.
- Restriction on Filing Returns: Non-compliant taxpayers will be debarred from filing GSTR-1/IFF.
- Potential Cancellation of Registration: If the required details are not provided even after 30 days of receiving Form REG-31, the taxpayer's registration may be subject to cancellation.
Revocation of Suspension
If taxpayers update their bank account details in response to the intimation in Form REG-31, the suspension of their GSTN will be automatically revoked. This provision ensures that taxpayers who comply with the requirements can continue their business activities without disruption.
Upcoming Functionality Development
GSTN is developing a new functionality to streamline the process of furnishing bank account details. This functionality aims to simplify compliance and ensure that the GST regime operates smoothly and efficiently.
Action Required by Taxpayers
In light of this advisory, taxpayers are urged to promptly furnish their bank account details if they have not done so already, especially if the 30-day period is nearing expiration. Timely action is crucial to avoid disruptions in business activities and adverse consequences.
Conclusion
The GSTN advisory underscores the importance of compliance with GST regulations. Registered taxpayers must adhere to this new requirement to avoid suspension of their GSTN and potential cancellation of their registration. By providing bank account details timely, taxpayers can ensure seamless business operations and adherence to GST norms.
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