How To Add Or Update Bank Account In GST Portal?

Learn how to add or update your bank account on the GST portal. Follow step-by-step instructions, comply with Rule 10A, and avoid GST registration issues.

Keeping your bank account details updated in the GST portal is crucial for seamless business operations. Whether you are adding a new account or updating existing information, the GST portal offers a straightforward process to manage it. Accurate bank account details ensure timely receipt of refunds and maintain compliance with GST regulations.

In this guide, we walk you through the step-by-step process to add a bank account in the GST portal, covering everything from login to application submission. Following the correct procedure helps avoid unnecessary delays and keeps your GST registration information accurate and up to date.

Introduction to Rule 10A

According to Rule 10A, a newly registered taxpayer must furnish their bank account details. This is after receiving the certificate of registration in Form GST REG-06: https://reg.gst.gov.in/registration/. And the GSTIN (Goods and Services Tax Identification Number).

Likewise, bank account information must be provided by the enrolled taxpayer, within 45 days after the registration date; or within the timeframe prescribed in Section 39 of the Central Goods and Services Tax Act for filing a return.

How to Add Bank Account in GST Portal: Step-by-Step Process

If GST registered taxpayers do not update their bank accounts details within 45 days of enrolling, the portal will prompt them to comply with the criteria underlined in Rule 10A.

• Step 1: Access the GST portal and log in using your credentials.
• Step 2: After logging in, click on the 'Services' menu available on the dashboard.
• Step 3: Under the Services tab, choose 'Registration' and proceed.
• Step 4: Click on 'Amendment of Registration Non-Core Fields' to update your details.
• Step 5: Go to the 'Bank Accounts' tab to add or update your bank account details.
• Step 6: Enter the required information such as:
  • Account Number
  • IFSC Code
  • Bank Name and Branch Address
  • Bank Account Type (Savings or Current)
• Step 7: Click on the Verification tab, select the Authorized Signatory, and enter the Place from where you are applying.
• Step 8: Complete the process by signing the application using DSC, E-sign, or EVC. Once submitted, your bank account will be updated on the GST portal.

Rule 10A Non-Compliance

Rule 21 of the Central Goods and Service Tax Rules, 2017 addresses the rules for cancellation of registration in certain cases. Further, rule 21 now includes a new sub-clause (d) which goes on to state that if the requirements of rule 10A are ignored. An individual's registration may even have a cancellation. Likewise, this clearly goes to show that if a taxpayer who is subject to Rule 10A's fails to comply, their registration may be terminated.

Rule 10A Exemptions

Rule 10A provides some exclusions. The following individuals are exempt from the requirement to update their bank account on the GST Portal.

• Further, to begin, those who have registered as a 'Tax Deductor at Source' pursuant Rule 12, Section 51.
• Second, individuals designated as 'Tax Collectors at Source' pursuant Rule 12, Section 52.
• Finally, those who have registration under Rule 16, i.e., those who have been granted suo-moto registration by the competent authority.

Consequence for Non-Compliance

As per notification number 31/2019 – Central Tax dated 28th June 2019, an amendment has been made to rule 21, introducing clause (d). This clause emphasizes that if there is a breach of the provisions outlined in rule 10A, the registration of the concerned taxable individual could face cancellation.

It is advised to promptly update your bank account information within the designated time frame to avoid the potential cancellation of your GST registration.

Conclusion

Furnishing your bank account details is a crucial step in the GST registration process. Adding or updating a bank account in the GST portal is a simple yet important process for smooth GST compliance. It ensures that any refunds, payments, or communications from the GST department are directed accurately to your registered bank account.

By following the step-by-step process mentioned above, taxpayers can easily manage their bank account details without any hassle. Always double-check the information entered to avoid delays or errors. Regularly updating your GST profile, including bank accounts, helps maintain transparency and avoid compliance issues in the future. Stay updated and keep your GST details accurate at all times.

FAQs

How long does it take for the GST registration to be linked with the designated bank account?

The time it takes for your GST registration to be linked with your designated bank account typically depends on the verification process of your bank and the workload of the GST authorities. However, it usually takes 3-5 business days for the link to be established.

Can a business owner change the linked bank account after the GST registration is complete, and what is the process for doing so?

Yes, you can change the linked bank account after GST registration. You need to submit an application for amendment in Form GST REG-14 along with the required documents, including the new bank account details. The processing time may vary, but it typically takes 7-10 business days.

Are there any restrictions on the type of transactions that can be conducted through the linked bank account for GST purposes?

No specific restrictions exist on the type of transactions you can conduct through the linked bank account for GST purposes. However, it's important to maintain proper records and ensure transactions are related to your business activities.

What happens if there are changes in the bank account details after GST registration, and how should these changes be updated?

If your bank account details change after GST registration, you need to update them through Form GST REG-14 within 15 days of the change. Failure to update may lead to penalties.

Is it mandatory for the linked bank account to be in the name of the business or can it be in the name of the proprietor or partners?

The linked bank account can be in the name of the business entity, proprietor, or partner, depending on the type of business registration. For sole proprietorships and partnerships, the account can be in the individual's name. However, it's important to ensure the account holder's name matches the name on the GST registration certificate.