For businesses registered under GST in the business world, one of the most important platforms is the GST (Goods and Services Tax) portal. Whether you are a small business owner or a large corporation, adding your bank account details to the GST portal is important for the smooth day-to-day running of your business, including the tax refunds, compliance, as well as auditing.
Why is it Important to Add a Bank Account on the GST Portal?
Adding your bank account to the GST portal provides the following benefits:
- GST refunds are processed with ease.
- Seamless reconciliation of tax credits.
- Clarity in audits and compliance.
This is an essential step for any business engaging in financial operations.
What is Rule 10A?
Rule 10A pertains to the procedures for providing bank account details in the GST portal. Notification No. 31/2019, dated 28th June 2019 was inserted by the Central Board of Indirect Taxes and Customs (CBIC). Non-furnishing would be classified as non-compliance, and the business would have to face repercussions in losing their registration or maybe leading to suspension or cancellation.
Objective of Rule 10A:
The primary objective of this introduction was to curb fraudulent GST registration and the issuance of fake invoices. The system verifies the bank account details of new GST registrants to ensure that only legitimate businesses register. It will allow the authorities to minimize tax evasion and increase compliance. But at the same time, it is required in order to credit the refunds into an accurate account provided by the taxpayer while filing the refund application at the GST portal.
Procedure to Submit Bank Account Details in the GST Portal
Taxpayer is required to provide bank account number, type of account, branch address, and IFSC code. For a non-core amendment, the IFSC code entered by the taxpayer and clicking on 'get address' automatically fills up the bank branch name. Beside a copy of the cancelled check leaf (jpeg/pdf), upload the bank statement/passbook extract.
How to give new entrants my bank account details
- Step 1: The taxpayer has to login to the GST Portal.
- Step 2: The taxpayer has to visit services-registration.
- Step 3: Click on new registration and fill in the mandatory details.
- Step 4: Go to the bank account tab and provide the account number, IFSC code, and bank name of the taxpayer.
- Step 5: Then, after that, the pertinent documents are needed to transfer, such as a cancelled check leaf or bank statement.
- Step 6: Now the taxpayer can file the application and verify in return.
FAQs
Q1. Is it mandatory to add a bank account?
No, adding a bank account is optional. For the Bank Account Tab, the fields to be filled are optional, i.e., non-mandatory, from 27th December 2018.
Q2. Where can I add bank account details?
Bank Accounts tab information is made optional and non-mandatory from 27th December 2018 onward. So you posted an amendment request from which we can enter bank details. Change bank account details after giving GSTIN in the non-core amendment application when you log in for the first time on the GST Portal.
Q3. How many bank accounts can I add?
You can only add 10 bank accounts.
Q4. My business bank account is not open yet. Can I add an alternate bank account?
Yes, you can still create an account immediately using your personal bank account and update it once you have opened a business bank account.
Q5. What document can I upload to provide proof of my bank account?
You may provide your monthly bank statement or the first page of your passbook.
Q6. I don’t know my branch’s IFSC code. Where can I find it?
You can also check your branch IFSC code using an online utility provided in the app under Bank Accounts. Find ‘Click here to find your bank’. Click on ‘here’
Q7. I cannot see my bank’s branch in the online utility provided. Is there any other way to find the IFSC Code?
Your branch IFSC code will also be printed on your account check-book for each and every check leaf.
