GST Rule 10A Update: Registrations to Be Automatically Suspended for Missing Bank Details

The GST Portal has introduced a key compliance update under Rule 10A of the CGST Rules. Now, newly registered taxpayers who do not provide their bank account details on time will have their GST registration automatically suspended. This change helps improve compliance, prevent misuse of GSTINs, and verify the authenticity of businesses.

1. Understanding Rule 10A of the CGST Rules

Rule 10A requires every taxpayer—except those under TCS, TDS, OIDAR (with certain exceptions), and suo-moto registrations—to provide valid bank account details within 30 days of GST registration or before filing GSTR-1/IFF, whichever is earlier. This ensures timely verification of business credentials and prevents the use of inactive or unverified GST registrations.

2. Auto-Suspension of GST Registration

A key change introduced by the portal is the automatic suspension of GSTIN if the taxpayer does not meet the Rule 10A compliance requirement.

• If bank account details are not provided within the stipulated 30-day period, the system will automatically suspend the GST registration.
• Taxpayers can view the suspension notice through: Services > User Services > View Notices and Orders

This feature ensures immediate action against non-compliant registrations, thereby improving system integrity.

3. Updating Bank Account Details (Non-Core Amendment)

Taxpayers can easily submit their bank account details by filing a non-core amendment on the GST Portal via Services > Registration > Amendment of Registration (Non-Core Fields). Once submitted, the system verifies the information, allowing the GSTIN to be restored to active status.

4. Automatic Dropping of Cancellation Proceedings

After the taxpayer furnishes their bank account information, the system will automatically drop any cancellation proceedings that were initiated due to non-compliance, which ensures a seamless reinstatement process without requiring manual intervention in most cases.

5. Manual Option for Dropping Proceedings

If the system does not automatically drop the cancellation proceedings on the same day:

• Taxpayers have the option to manually initiate the reinstatement using the
  “Initiate Drop Proceedings” button available under: Services > User Services > View Notices and Orders

This gives taxpayers control to ensure that proceedings are closed promptly and registration is restored.

6. Exemptions from Mandatory Bank Account Furnishing

The requirement to provide bank account details does not apply to OIDAR and NRTP taxpayers. However, if an OIDAR taxpayer has a “Representative Appointed in India – Yes,” then furnishing bank account details becomes mandatory.

Conclusion

The GST Portal’s Rule 10A update enforces stricter compliance to prevent misuse of GST registrations. Taxpayers must provide bank account details within 30 days to avoid automatic suspension. With both automatic and manual reinstatement options, timely action ensures active GST status and smooth tax compliance.