GSTN Advisory 05-12-2025
1. Background
The Goods and Services Tax Network (GSTN) has operationalised an automated mechanism to suspend GST registrations where newly registered taxpayers fail to furnish their bank account details within the prescribed timelines under Rule 10A of the CGST Rules, 2017. The initiative strengthens compliance discipline and improves validation of registration data across the GST ecosystem.
2. Timelines for Furnishing Bank Account Details
Under Rule 10A, taxpayers must furnish their bank account information:
- Within 30 days of registration, or
- Before filing their first Form GSTR-1 or IFF,
whichever is earlier
This applies to all normal taxpayers and registration categories where bank information is mandatory for business validation and transactional activity.
3. Automated Suspension Mechanism
Where a taxpayer does not upload bank account information within the stipulated timeline, the GST system will:
- Automatically suspend the GST registration, without requiring departmental notice or adjudication
- Block return filing and related compliance features until the issue is rectified
- Flag the status on the taxpayer dashboard to alert the taxpayer of pending compliance
This automation eliminates manual intervention and ensures uniform enforcement of registration conditions.
4. Automatic Drop of Cancellation Proceedings
Upon furnishing bank details through a non-core amendment, the system will:
- Automatically revoke the suspension
- Drop cancellation proceedings initiated due to non-submission
- Restore the registration status to “Active”, subject to successful validation
5. Manual Intervention Option
If suspension revocation does not automatically reflect on the same day:
- The taxpayer may trigger the workflow through the “Initiate Drop Proceedings” option available on the GST portal
- This ensures timely restoration of registration status without requiring departmental escalation
6. Applicability Exemptions
The advisory clarifies that the requirement to submit bank account details does not apply to:
- OIDAR (Online Information and Database Access or Retrieval Services) service providers
- NRTP (Non-Resident Taxable Persons)
7. Exception for OIDAR Entities
If an OIDAR service provider appoints an authorised representative in India, furnishing bank account details becomes mandatory.
This exemption structure recognises cross-border business models, while ensuring identification where domestic representation exists.
8. Compliance Implications
Taxpayers should:
- Upload bank details immediately after registration
- Monitor dashboard alerts for suspension or compliance warnings
- Ensure timely amendment filing to avoid disruption in return filing
- Use self-service restoration tools where automatic revocation does not occur
Failure to comply can result in suspension, return filing blockage, delayed business activity, or potential cancellation proceedings, until requisite details are provided.
