Auto Suspension of GST Registration for Not Furnishing Bank Account Details - Rule 10A Explained

Background

The Goods and Services Tax Network (GSTN) has now implemented an automatic suspension mechanism for taxpayers who fail to furnish their bank account details within the time limit prescribed under Rule 10A of the CGST Rules.

This step aims to ensure authenticity, transparency, and traceability of businesses operating under GST. It primarily targets inactive or fraudulent registrations that fail to link a valid bank account with GSTIN.

What Rule 10A of the CGST Rules Says

Rule 10A: “After obtaining registration, a registered person shall, within a period of thirty days from the date of grant of registration or before furnishing the details of outward supplies under section 37 in Form GSTR-1 or using the Invoice Furnishing Facility (IFF), whichever is earlier, furnish information with respect to details of his bank account.”

In simple words:

• Every registered taxpayer must add valid bank account details on the GST portal within 30 days of registration.
• Or before filing GSTR-1 / IFF, whichever is earlier.
• Failing to do so will now result in automatic suspension of registration.

GSTN System Changes Implemented

1. Automatic Suspension

If a taxpayer fails to update bank account details within 30 days of registration:

• The GST system will automatically suspend the registration.
• A suspension order will be issued automatically and can be viewed at:
  Services > User Services > View Notices and Orders

2. How to Add Bank Account Details

Taxpayers can update their bank details easily by:

• Navigating to
  Services > Registration > Amendment of Registration (Non-Core Fields)
• Adding valid bank account information (Account Number, IFSC, Bank Name, and Proof Document).

3. Automatic Dropping of Cancellation Proceedings

Once valid bank details are furnished:

• The system will automatically drop any pending cancellation proceedings due to non-furnishing of bank details.

4. Manual Option to Drop Proceedings

If the system does not drop the cancellation automatically:

• The taxpayer can manually initiate the process via
  ???? Services > User Services > View Notices and Orders > Initiate Drop Proceedings

5. Exemptions

The following taxpayers are exempted from furnishing bank account details:

• OIDAR (Online Information and Database Access or Retrieval Services)
• NRTP (Non-Resident Taxable Persons)

However:

• If an OIDAR taxpayer appoints a representative in India, then bank details become mandatory.

Why This Change Matters

This auto-suspension feature will help:

• Prevent misuse of GST registration by shell or inactive businesses.
• Ensure all active GSTINs are linked with real, traceable bank accounts.
• Enhance transparency and taxpayer compliance.
• Reduce cases of fake invoice circulation and ITC frauds.

Practical Tips for Taxpayers

1. Add bank details immediately after GST registration approval.
2. Ensure that the bank account belongs to the same PAN entity as the GST registration.
3. Use an official business bank account - not a personal one.
4. Check the GST portal periodically for any notices under “View Notices and Orders.”
5. Keep a copy of the bank proof (cancelled cheque / bank statement) handy before uploading.

FAQs - Auto Suspension under Rule 10A

1. What happens if I don’t furnish my bank details within 30 days of registration?

Your GST registration will be automatically suspended by the system. You won’t be able to issue invoices or file returns until reactivated.

1. How can I remove the suspension?

Login to the GST portal → Add your bank details → System will automatically drop the suspension.

1. What if the system does not remove the suspension automatically?

You can manually initiate the process via
Services > User Services > View Notices and Orders > Initiate Drop Proceedings.

1. What documents are needed to add bank details?

• Cancelled cheque with entity name printed
• First page of passbook or bank statement showing account holder name, account number, and IFSC code

1. Who is exempt from furnishing bank details?

• OIDAR and Non-Resident Taxable Persons (NRTP)
  However, OIDAR entities appointing Indian representatives must provide bank details.

1. Can I still file returns if my registration is suspended?

No. Once suspended, you cannot file GSTR-1, GSTR-3B, or IFF, or make taxable outward supplies until the suspension is revoked.

1. Will late submission attract any penalty?

Currently, no separate penalty is prescribed, but the suspension may affect your ability to continue business and claim ITC.

1. How can I confirm my registration is active?

Check your GSTIN status on the GST portal under “Track Application Status” or “Search Taxpayer” - status should show “Active”.

Conclusion

This new feature reinforces the importance of timely compliance under GST.
Every taxpayer should verify that their bank details are updated and linked to avoid automatic suspension and disruption of business activities.

If you haven’t added your bank details yet, do it today - it takes just a few minutes on the portal but prevents major compliance hassles later.

For more information and Details Please contact:
Dr. Muhammed Mustafa C T
Senior Tax Consultant, BRQ Associates
???? +91 96331 81898 | ???? brqassociates@gmail.com
???? www.brqassociates.com