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August 29, 2024
GSTR-1 FILING BLOCKED WITHOUT BANK DETAILS: NEW GST RULE EFFECTIVE FROM SEPTEMBER 1, 2024.
The Goods and Services Tax Network (GSTN) has issued a critical advisory impacting all GST taxpayers. Starting from September 1, 2024, any taxpayer who fails to provide their bank account details to the GST authorities will be barred from filing their outward supply return, GSTR-1. This new rule aims to enhance the transparency and integrity of the GST registration process.
UNDERSTANDING GST RULE 10A
GST Rule 10A mandates that a taxpayer must furnish details of a valid bank account within 30 days of receiving their GST registration. Alternatively, these details must be submitted before filing details of outward supplies of goods or services using Form GSTR-1 or through the Invoice Furnishing Facility (IFF), whichever comes first. The GSTN advisory, dated August 23, 2024, clarifies that from September 1, 2024, taxpayers will not be able to submit GSTR-1 or IFF without providing valid bank account information in their registration details on the GST portal.
REASON FOR THE AMENDMENT TO RULE 10A
The GST Council in its meeting in July 2023, approved an amendment to Rule 10A. This amendment aims to strengthen the GST registration process to more effectively combat the issue of fake and fraudulent registrations under the GST regime. By requiring all registered taxpayers to submit bank account details associated with their name and PAN. This amendment ensures a more robust and secure registration process.
IMPLICATIONS OF THE RULE AMENDMENT FOR TAXPAYERS
Under the amended Rule 10A, taxpayers must provide their bank account details within 30 days of the grant of registration or before filing a statement of outward supply in Form GSTR-1/IFF, whichever is earlier. This requirement is designed to ensure that every registered entity maintains a transparent and verifiable banking record linked to its GST registration. Failing to comply with this rule will result in the taxpayer being unable to file GSTR-1 or use the IFF starting with the August 2024 tax period.
CALL TO ACTION FOR GST TAXPAYERS
The GSTN advisory urges all taxpayers who have not yet provided their bank account details to promptly update their registration information on the GST portal. This is essential to avoid any disruption in their ability to file returns. The advisory explicitly states that without valid bank account details in the GST registration, taxpayers will be unable to file GSTR-1 or IFF from the August 2024 return period onwards.
SUGGESTIONS
To avoid potential compliance issues and penalties, all GST-registered entities must review and update their bank account details on the GST portal immediately. Complying with the updated Rule 10A is essential for maintaining smooth and uninterrupted operations within the GST framework.
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