Advisory for Furnishing Bank Account Details Before Filing GSTR-1
Date: August 23rd, 2024
Advisory for Furnishing Bank Account Details Before Filing GSTR-1 In light of Notification No. 38/2023 – Central Tax, issued on August 4th, 2023, it is imperative for all taxpayers to understand the importance of furnishing valid bank account details on the GST Portal before filing their GSTR-1 or using the Invoice Furnishing Facility (IFF). This requirement stems from Rule 10A of the Central Goods and Services Tax (CGST) Rules, 2017, which was initially notified via Notification No. 31/2019 dated June 28th, 2019.
Understanding Rule 10A: The Bank Account Requirement
Rule 10A of the CGST Rules, 2017 mandates that taxpayers must furnish the details of a valid bank account within 30 days from the date of grant of registration. Alternatively, this requirement must be fulfilled before filing the details of outward supplies of goods or services in FORM GSTR-1 or using the Invoice Furnishing Facility (IFF), whichever is earlier.
This rule aims to ensure that the GST system has accurate and up-to-date bank account information for all registered taxpayers, thereby facilitating smoother transactions and compliance processes.
Notification No. 38/2023: The New Enforcement Date
Despite various advisories and communications issued by the GST authorities over time, some taxpayers have not yet complied with this requirement. To address this, Advisory for Furnishing Bank Account Details Before Filing GSTR-1 the government has announced that, effective September 1st, 2024, Rule 10A will be strictly enforced. Consequently, starting from the August 2024 tax period, taxpayers who have not furnished their valid bank account details will be unable to file their GSTR-1 or use the IFF
Steps to Furnish Bank Account Details
To avoid disruptions in filing your GSTR-1 or IFF, it is crucial to update your bank account information on the GST Portal. Follow these steps:
- Login to the GST Portal.
- Navigate to Services > Registration > Amendment of Registration Non-Core Fields.
- Locate the section for updating bank account details.
- Provide accurate and valid bank account information.
- Save and submit the amendment.
This process is straightforward and ensures that your registration details are complete and up-to-date, allowing you to continue filing your returns without any issues.
Consequences of Non-Compliance
Advisory for Furnishing Bank Account Details Before Filing GSTR-1 If you fail to update your bank account details by September 1st, 2024, you will be unable to file your GSTR-1 or use the IFF for the August 2024 tax period and beyond. Advisory for Furnishing Bank Account Details Before Filing GSTR-1 This non-compliance could lead to penalties, late fees, and other complications that can disrupt your business operations.
Conclusion
Advisory for Furnishing Bank Account Details Before Filing GSTR-1 With the enforcement of Notification No. 38/2023 Central Tax from September 1st, 2024, furnishing valid bank account details on the GST Portal is no longer optional—it is a mandatory requirement. Taxpayers are urged to take immediate action to update their registration details to avoid any disruption in filing returns.
Ensure that your compliance is up-to-date, and safeguard your business from potential penalties by adhering to this new enforcement.
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