On the GST portal bank account validation is directed to the process where the GST portal verifies the bank account information which is furnished via the taxpayer in the course of registration or updates. For facilitated tax compliance and crediting refunds it is needed to have accurate bank account details.
The GST portal bank account validation would assist in ensuring genuine business registrations and support in preventing bogus activities.
GSTN New Advisory for Bank Validation Account Process
A validation process for cases where a taxpayer attempts a non-core amendment to update bank account details has been implemented by the GSTN. At the time of adding the bank account details it is important for the assesses to comply with the said procedure.
- After entering the bank account details, the taxpayer is required to click on the “VALIDATE ACCOUNT DETAILS” button.
- After clicking the “Validate Account” button, the “Save” button at the bottom of the screen as shown remains disabled.
- The “Save” button will become active only after the “Validate Account Details” button is clicked.
Is It Necessary to Submit Bank Account Details?
Yes, under the issued advisory on the GST portal, it is mandatory, that taxpayers who do not have furnished valid bank account details would be unable to file their GSTR-1 form or Invoice Furnishing Facility (IFF) returns for outward supplies from September 1, 2024.
As per Rule 10A which mandated the taxpayers to provide their bank account details within 30 days of registration or before filing GSTR-1/IFF, whichever is earlier.
Main Objective of Rule 10A
To prevent fraudulent GST registrations and fake invoice generation Rule 10A was introduced.
It is obligated for the new registrants to verify their bank account details so that merely genuine businesses are registered.
It indeed assists in ensuring that refunds are credited to the correct bank account which the taxpayer has mentioned on the GST portal.
What is the Method to Check the Bank Account Validation Status?
The bank account validation status can be checked under the Dashboard → My Profile → Bank Account Status tab.
Post finishing the validation procedure the bank account number in the database shall display one status out of four status types which are specified below.
Showing Failure
If it shows the ‘Failure’ icon, the Taxpayer should have
- The entered PAN number is not valid.
- PAN is not available in the related bank account.
- PAN Registered under GSTIN and the PAN maintained in the Bank Account are different.
- IFSC code entered for the bank account details is not valid.
Success with Statement
The status specified that the account cannot be validated as the bank is not integrated with NPCI for online bank account validation.
It is important for the taxpayer to furnish the alternate bank account number so that it can be revalidated to expedite the additional online processes.
Validation Pending
When the Tax Payer is shown, the status “Pending for Validation” icon then please wait since the account validated by NPCI.
Note: The taxpayer can add or remove bank account information at any time, and any new account details will undergo validation.
Frequently Asked Questions (FAQ’s)
Q.1 – What is the need for Bank Account Validation?
Ensuring true business registrations, blocking fraudulent activities, and verifying that refunds are issued to the right accounts are necessary.
Q.2 – What takes place if I don’t validate my bank account?
You shall not be permitted to file returns like GSTR-1 or using the IFF starting from the applicable tax period.
Q.3 – What documents are to be in hand for the validation of the bank account on the GST portal?
A copy of your bank statement, passbook, or a cancelled cheque with your name, bank account number, and IFSC details is required.
