A new update regarding GST returns has emerged, indicating a significant change for taxpayers. According to recent information, GST taxpayers who fail to provide valid bank account details will not be allowed to file GSTR-1 starting September 1, 2024. This announcement was made by the Goods and Services Tax Network (GSTN) in its advisory. As per GST Rule 10A, it is mandatory for taxpayers to submit valid bank account details within 30 days of their registration date. Alternatively, they must provide this information before submitting details of their outward supplies of goods or services in GSTR-1 or using the Invoice Furnishing Facility (IFF), whichever occurs first.

Advisory Issued

In its advisory issued on August 23, GSTN stated that this rule will come into effect on September 1, 2024. This means that for the tax periods following August 2024, taxpayers will not be able to file GSTR-1 or IFF on the GST platform without providing valid bank account details in their registration information. The GST Council approved the amendment to Rule 10A in a meeting held in July of the previous year, aiming to strengthen the registration process and effectively tackle issues related to counterfeit and fraudulent registrations under GST.

Amendment Details

According to the amendment, registered taxpayers are required to submit the details of the bank account in their name, linked to their PAN, within 30 days of obtaining registration, or before filing details of outward supplies in GSTR-1/IFF, whichever comes first. The GSTN has urged all taxpayers who have not yet provided valid bank account details to log into the GST platform and update their registration information. The advisory explicitly mentioned that without valid bank account details in GST registration, taxpayers will be unable to file GSTR-1 or IFF for the return period starting in August 2024.

Importance of Compliance

Compliance with these new regulations is critical for all GST taxpayers as it not only strengthens the integrity of the GST system but also prevents fraudulent activities associated with fake registrations. Failure to comply could result in significant operational disruptions for businesses that depend on timely GST filings.

Steps to Update Bank Account Details

1. Log in to your GST account on the GST portal.
2. Select the option to update registration details.
3. Enter the required bank account details, ensuring they are valid and correctly linked to your PAN.
4. Submit the changes and await verification.

Conclusion

As the implementation date approaches, GST taxpayers must remain vigilant and ensure their compliance with the new regulations. Updating bank account details is not just a legal obligation; it also plays a pivotal role in maintaining the integrity of the tax system. By ensuring that all compliance measures are met, businesses can avoid complications and continue their operations smoothly in the ever-evolving tax landscape.