GST Taxpayers without valid Bank Account to be barred from Filing GSTR-1

GST taxpayers who do not provide details of their bank account to GST authorities will be prevented from filing the GSTR-1 outward supply return beginning September 1, according to an advisory from the GSTN.

According to GST Rule 10A, a taxpayer must provide details of a valid bank account within 30 days of the grant of registration, or before furnishing details of outward supplies of goods or services, or both, in Form GSTR-1 or using the Invoice Furnishing Facility (IFF), whichever is earlier.

“This rule will be implemented starting September 1, 2024. As a result, beginning in August 2024, taxpayers will be unable to produce GSTR-01/IFF, as applicable, unless they provide the information of a legitimate bank account in their registration details on the GST portal,” GSTN stated in an advisory.

In its July meeting last year, the GST Council approved an adjustment to Rule 10A to tighten the registration process and effectively combat the threat of fake and fraudulent GST registrations.

According to the amendment, a registered taxpayer was obliged to provide the details of a bank account with his name and PAN within 30 days of registration or before filing a statement of outwards supply in Form GSTR-1/IFF (invoice furnishing facility), whichever occurred first.

In the advisory, the GSTN requested that any taxpayers who had not yet provided the details of a valid bank account add their information of bank account to their registration details by visiting the portal of GST.