Introduction

Rule 10A of the CGST Rules places a mandatory requirement on taxpayers to furnish their bank account details soon after obtaining GST registration. The purpose of this rule is to prevent fraudulent registrations, strengthen KYC compliance, and ensure that only genuine businesses operate under GST.

GSTN has now implemented an enhanced mechanism that auto-suspends GST registrations if bank account details are not furnished within the prescribed time. This article explains the updated provisions, compliance requirements, system automations, and practical steps taxpayers need to follow.

1. Requirement under Rule 10A

Every registered taxpayer must furnish their valid bank account details:

Within 30 days from the date of grant of registration, or
Before filing the first outward supply details in GSTR-1 or IFF,

Whichever is earlier.

Who is covered?

✔ Regular taxpayers
✔ Composition taxpayers
✔ Casual taxable persons
✔ SEZ units / SEZ developers

Who is exempt?

❌ TCS registrants
❌ TDS registrants
❌ Suo-moto registrations
❌ OIDAR & NRTP (with exception noted below)

2. Automatic Suspension of GST Registration

If the taxpayer fails to furnish bank account details within the required time frame, the GST system will:

→ Automatically suspend the GST registration

The suspension order will be available at:

Services → User Services → View Notices and Orders

During suspension:

Taxpayer cannot file GSTR-1/IFF
Taxpayer cannot generate E-way bills
Taxpayer cannot amend core fields
ITC to recipients may get blocked due to suspicion of KYC non-compliance

This automatic suspension is system-driven and does not require any officer intervention.

3. Adding Bank Account Details — How to Comply

Taxpayers can add their bank account details easily via:

Services → Registration → Amendment of Registration (Non-Core Fields)

Documents required:

Bank account number
IFSC
Copy of cancelled cheque / bank statement (as per portal format)

Once submitted, the amendment is processed and updated in the registration profile.

4. Automatic Dropping of Cancellation Proceedings

If suspension was initiated due to missing bank account details:

→ Once bank details are furnished, the portal will automatically drop the cancellation proceedings.

This means the registration will be restored to active status without requiring manual approval if details are correctly updated.

5. Manual “Drop Proceedings” Option

In some cases, the auto-update may not happen immediately.

Taxpayers can take manual action:

Services → User Services → View Notices and Orders → Initiate Drop Proceedings

This allows the taxpayer to request closure of the cancellation proceedings if bank details have already been added.

6. Exemptions & Special Cases

OIDAR & NRTP Taxpayers

Bank account details are not mandatory, except:

If an OIDAR taxpayer selects “Representative Appointed in India – Yes”,
then bank account details become mandatory.

This ensures financial traceability when an Indian representative is involved.

7. Practical Impact on Taxpayers

Compliance Importance

Failing to add bank details can result in:

Business disruption due to suspension
Inability to issue invoices properly
Blocking of ITC flow to customers
Risk of cancellation of registration

Best Practices

Upload bank details immediately after registration
Keep supporting documents ready
Regularly monitor notices under “View Notices and Orders”
Ensure correct account number & IFSC to avoid rejection

The auto-suspension provision under Rule 10A emphasizes the importance of early KYC compliance in GST. Furnishing bank account details is now a critical first step after registration. With the GST portal’s automated suspension and reinstatement process, taxpayers must stay vigilant to avoid business interruptions.