GST taxpayers without valid bank a/c to be barred from filing GSTR-1 from Sept 1

New Delhi: In a move to strengthen the Goods and Services Tax (GST) registration process and combat fraudulent activities, the GST Network (GSTN) has announced a significant change affecting taxpayers. Starting September 1, 2024, GST-registered entities that have not provided valid bank account details will be barred from filing their outward supply return, known as GSTR-1.

This enforcement stems from GST Rule 10A, which mandates taxpayers to furnish details of a valid bank account within 30 days of registration or before submitting their first GSTR-1 or using the Invoice Furnishing Facility (IFF), whichever comes first. The GSTN advisory, dated August 23, emphasises that this rule will be strictly implemented for the tax period of August 2024 onwards.

The decision to amend Rule 10A was approved by the GST Council in July 2023, aiming to enhance the integrity of the registration process and address the growing concern of fake and fraudulent GST registrations. The amendment requires taxpayers to provide details of a bank account that matches their name and Permanent Account Number (PAN). To ensure compliance, the GSTN has urged all taxpayers who have yet to furnish their bank account information to do so promptly by updating their registration details on the GST portal. The advisory clearly states that failure to provide valid bank account details will result in the inability to file GSTR-1 or use the IFF for the August 2024 return period and beyond.