• twitter-icon
Unlimited Tax Return Filing


How the New GST Rule 10A Will Affect Businesses in India?

GST Filing Ban for Taxpayers Without Valid Bank Accounts

Attention all taxpayers! The GST department has announced that starting from 1st September if you don’t have a valid bank account linked to your GST registration number, you won’t be able to file the GSTR-1 form under a new rule called GST Rule 10A.

Effective Date for New GST Rule 10A Enforcement

GST assessee should have a valid bank account linked to their GST registration to file GSTR-1 from September 1, 2024.

Mandatory Compliance Under GST Rule 10A

The assessee should furnish the information of a valid bank account within 30 days of obtaining the GST registration or before the filing date of the outward supplies in GSTR-1/IFF, whichever arrives first.

GST Filing Impact

Taxpayers without valid bank account details in their GST registration, cannot e-file the GSTR-1 or Invoice Furnishing Facility (IFF) starting from the tax period of August 2024.

Amendment Objective

The motive of the rule revised in July 2023 is to strengthen the registration process and fight bogus registrations.

Action Needed

The assessee who does not have updated their bank account details must required to do the same through the GST portal.

Guidance Note

An advisory has been issued by the GST network (GSTN) asking all assesses to ensure their bank account information is revised to prevent disruption in return filing.

GST Rule 10A: What Businesses Need to Know

Restriction on GST Filing Returns: The assessee without valid bank account information linked to their GST registration will not be able to file their outward supply return (GSTR-1) or use the Invoice Furnishing Facility (IFF) starting from September 1, 2024.

Increased Compliance Pressure: The assessee following the new rule will face pressure by updating their bank account details to prevent disruption in their filing process.

Possible Disruption: Businesses that are not able to furnish valid bank account details may undergo disruptions in their GST complaint, affecting their ability to report outward supplies and claim ITCs.

Heightened GST Registration Scrutiny: The revision has the objective of lessening the bogus registrations, thereby raising the scrutiny of the new and current GST registrations.

Challenges in Operations: Companies might be required to update their systems and processes to ensure compliance with the new provision, which can have other administrative measures.

Regulatory Implementation: GST authorities legislate this rule, which can result in penalties or other consequences for non-compliance.

Promoting Accurate Registrations: The rule has been made to motivate the assesses to maintain precise and legal registration information, thereby revising the virtue of the GST system.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
SAGINFOTECH PRODUCTS

Leave a comment

Your email address will not be published. Required fields are marked *

Follow Us on Google News

Google News

Latest Posts

New Offer for Professionals

Super Tax Offer

Upto 20% Off
Tax, ROC/MCA, XBRL, Payroll, Online GST

Limited Offer, Hurry

Big Offer for Tax Experts

Upto 20% Discount on Tax Software

    Select Product*

    Current GST Due Dates