Introduction
If you’re a registered taxpayer under the Goods and Services Tax (GST), there’s an important update you need to know. The GST Council has issued Notification No. 38/2023, requiring taxpayers to provide their bank account details before filing GSTR-1 or using the Invoice Furnishing Facility (IFF). This rule will be enforced from September 1, 2024. It’s part of an effort to improve GST compliance and transparency.
Why Is This Change Important?
Under Rule 10A of the Central Goods and Services Tax Rules, 2017, it was already required that taxpayers provide valid bank account details within 30 days of registration or before filing GSTR-1/IFF, whichever was earlier. However, the enforcement of this rule is now becoming stricter.
This change is crucial for several reasons:
- Ensuring Compliance: By requiring bank account details, GST authorities can better track transactions and ensure that businesses are following the rules.
- Preventing Fraud: Having accurate bank account information helps to stop fraudulent activities by verifying the legitimacy of registered taxpayers.
- Streamlining GST Processes: With up-to-date bank account details, the GST system can work more efficiently, leading to quicker refunds and better communication between businesses and tax authorities.
Steps to Stay Compliant
Starting from September 1, 2024, you won’t be able to file your GSTR-1 or use the IFF for the August 2024 tax period onwards if you haven’t updated your bank account details. Here’s how you can ensure you are compliant:
- Log in to the GST Portal: Visit the GST Portal and log in using your credentials.
- Go to Registration Amendment: Navigate to
Services > Registration > Amendment of Registration Non-Core Fieldson the portal. - Update Your Bank Account Details: Enter your valid bank account details. Make sure the information is correct.
- Save and Submit: Once you’ve entered your details, save and submit the form.
By following these steps, you’ll ensure your GSTR-1 or IFF filings proceed without any issues.
Consequences of Not Complying
If you don’t update your bank account details by September 1, 2024, you could face serious problems. Most importantly, you won’t be able to file your GSTR-1 or use the IFF. This could lead to penalties and delays in your tax compliance. Additionally, it might disrupt your business operations, making it harder to manage your cash flow and maintain a good relationship with GST authorities.
Conclusion
With the enforcement of Notification No. 38/2023, it’s crucial to update your bank account details on the GST Portal right away. This simple action will help your business remain compliant and continue operating smoothly under the GST system.
Don’t wait until the last minute. Update your bank account details today to avoid any disruptions in your filing process for the upcoming tax periods.
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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
