Important Advisory: GSTR-1 Bank Account Update – Update Your Bank Account Details Before Filing GSTR-1/IFF
The GST department has issued a crucial update that all taxpayers need to be aware of. If you are registered under the Goods and Services Tax (GST) in India, it is now mandatory to furnish the details of a valid bank account before filing your GSTR-1 or using the Invoice Furnishing Facility (IFF). This requirement, which has been emphasized through Notification No. 38/2023 – Central Tax, dated 4th August 2023, will be strictly enforced starting from 1st September 2024.
Rule 10A of the Central Goods and Services Tax Rules, 2017
As per Rule 10A of the Central Goods and Services Tax Rules, 2017, which was initially notified through Notification No. 31/2019 dated 28th June 2019, every taxpayer is required to provide the details of a valid bank account within 30 days from the date of GST registration. Alternatively, this information must be furnished before filing the details of outward supplies in FORM GSTR-1 or using the Invoice Furnishing Facility (IFF), whichever comes first.
Why This Matters
Furnishing your bank account details is not just a formality; it is a mandatory requirement. The GST department has issued several advisories and reminders, emphasizing the importance of updating your bank account information in the GST registration. Failure to comply with this rule could result in significant disruptions to your business operations.
Enforcement Starting from 1st September 2024
Starting from 1st September 2024, the GST department will strictly enforce Rule 10A. This means that if you have not updated your bank account details in the GST Portal by this date, you will not be able to file your GSTR-1 or use the IFF for the tax period of August 2024 onwards. This enforcement is part of the government’s ongoing efforts to streamline tax processes and ensure greater compliance.
How to Update Your Bank Account Details
If you have not yet updated your bank account details in the GST registration, now is the time to do so. Here’s how you can update your information on the GST Portal:
- Log in to the GST Portal: Go to the official GST Portal and log in with your credentials.
- Navigate to Services: From the dashboard, click on ‘Services.’
- Select Registration: Under ‘Services,’ select ‘Registration.’
- Choose Amendment of Registration (Non-Core Fields): Click on ‘Amendment of Registration Non-Core Fields.’
- Update Bank Account Details: Add or update your bank account information in the relevant fields.
Final Reminder
It is essential to understand that without a valid bank account updated in your GST registration, you will not be able to file your GSTR-1 or use the IFF for the August 2024 return period. To avoid any disruptions or penalties, ensure that your bank account details are updated well before the 1st of September 2024.
Conclusion
This advisory is a critical reminder for all GST-registered taxpayers. Updating your bank account details is not just about compliance; it’s about ensuring the smooth operation of your business under the GST regime. Don’t wait until the last minute—log in to the GST Portal today and update your information to stay compliant and avoid any potential issues.
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