The Goods and Services Tax (GST) Act has brought about several changes in the way businesses function in India. Among the many changes, one of the most significant is the implementation of Rule 10A. As per this rule, new GST registrants are required to furnish their bank details on the GST Portal. Here's what you need to know about this rule:
Rule 10A was introduced by the Central Board of Indirect Taxes and Customs (CBIC) in April 2020. It requires new GST registrants to provide their bank account details at the time of registration. This is to enable the government to verify the authenticity of the bank account and ensure that it belongs to the registrant.
The objective of Rule 10A is to prevent fraudulent activities such as the creation of fake GST registrations and the generation of bogus invoices. By verifying the bank account details of new GST registrants, the government can ensure that only genuine businesses are registered under the GST regime. This will help in curbing tax evasion and improving compliance.
Here's a step-by-step guide on how to furnish bank details on the GST Portal:
If a new GST registrant does not furnish their bank account details as per Rule 10A, their registration application will be considered incomplete. This means that they will not be able to generate GST invoices or file GST returns until their application is complete. In other words, they will not be able to conduct any business transactions until their registration is approved.
Rule 10A is an important step towards ensuring compliance and preventing tax evasion under the GST regime. New GST registrants must ensure that they furnish their bank account details on the GST Portal to avoid any delays in the registration process. By complying with this rule, businesses can benefit from a transparent and efficient tax system.
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