Bank Account for GST Registration

The Central Board of Indirect Taxes and Customs (CBIC), recently by means of a notification no. 31/2019 – Central Tax, that was dated 28th June 2019, had notified the Central Goods and Service Tax (Fourth Amendment) Rules, 2019, towards making an amendment to the Central Goods and Service Tax Rules, 2017. Through the stated notification, the Board introduced new rule 10A towards the Central Goods and Service Tax Rules, 2017. As per the Rule 10A of GST, it comprises of provisions which is regarding the providing of bank account for GST registration. However, if a taxpayer fails towards complying with Rule 10A of GST, then the taxpayer shall face noncompliance for this matter in which the taxpayer registration may get cancelled.

The Provisions of Rule 10A

According to rule 10A, a newly registered taxpayer is needed to produce bank account details once the taxpayer gets the registration certificate in Form GST REG-06 as well as after receiving the Goods and Service Tax Identification Number (GSTIN).

The registered taxpayer has to submit the stated details of bank account before of following dates–

•    In forty-five days starting from the date of grant of registration; or

•    Within the due date of filing of return as per section 39 of the Central Goods and Service Tax Act.

Also, there’s a list of individuals who are exempted from following the provisions of rule 10A of GST that’s those individuals aren't needed to furnish the bank account details–

•    As per section 51, a person who is is registered according to the provisions of Rule 12 as the Tax Deductor at Source.

•    As per section 52 a person who is registered according to the provisions of Rule 12 as the Tax Collector at Source.

•    A person who is registered according to the Rule 16 provisions implies that an individual who has been granted suo-moto registration through the appropriate officer.

Rule 10A non-compliance consequence

If a taxpayer towards whom the provisions of Rule 10A has been applied fails to abide with the provisions, then, the registration of such an individual shall be prone to be cancelled.

As per Rule 21 of the Central Goods and Service Tax Rules, 2017, it specifies the clauses of registration cancellation in certain matters. The new sub-clause (d) was introduced within the Rule 21, through the mentioned notification no. 31/2019 – Central Tax, it specified that where there is a violation of Rule 10A provisions, the registration of the individual shall be liable towards being cancelled.

The individuals and companies who are needed to register for GST

The individuals and companies or firms who should complete GST registration include:

•    Taxpayers or Companies that are accountable for deducting TDS or collect TCS.

•    Every individual taxpayer who makes interstate supplies.

•    People who are making casual supply of taxable products or services.

•    Agents who are making supplies for other registered taxpayers.

•    New owners in case the proprietor expires or when there was a transfer of business or merger of business or demerger of business is going on.

•    Taxpayers who pay taxes in the Reverse Charge Mechanism.

•    Input Service Distributors.

•    The suppliers of goods and services with yearly aggregated turnover surpassing the threshold limit.

•    Non-resident taxable suppliers of products and services.

•    The portal operators as well as suppliers of E-commerce.

•    United Nations bodies as well as embassies.

•    the other notified bodies, which also include Government bodies.

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Author:

eStartIndia Team