Auto Suspension of GST Registration due to Non-Furnishing of Bank Account.

(Rule 10A of the CGST Rules, 2017)

Date: 5 December 2025

Introduction

The Goods and Services Tax Network (GSTN) has implemented an important compliance mechanism under Rule 10A of the CGST Rules, 2017, aimed at ensuring transparency and preventing misuse of GST registrations. As per the latest system updates, GST registrations will be automatically suspended if registered taxpayers fail to furnish their bank account details within the prescribed time.

This article explains the legal requirement under Rule 10A, the consequences of non-compliance, and the procedure for restoring a suspended registration.

Legal Requirement under Rule 10A

Rule 10A mandates that every registered taxpayer, except those registered under TDS, TCS, or Suo-moto registrations, must furnish details of at least one bank account on the GST portal:

• Within 30 days from the date of grant of GST registration, or
• Before filing GSTR-1 or IFF, whichever is earlier.

Failure to comply with this requirement attracts system-driven action in the form of suspension of GST registration.

Automatic Suspension of GST Registration

If a taxpayer does not furnish bank account details within the stipulated time:

• The GST registration is automatically suspended by the system
• No separate notice or manual intervention by a tax officer is required
• The suspension order can be viewed on the GST portal at:
  Services → User Services → View Notices and Orders

Impact of Suspension

During the suspension period:

• Tax invoices cannot be issued
• GSTR-1 and other returns cannot be filed
• The taxpayer may face serious business and compliance disruptions

Procedure to Furnish Bank Account Details

Taxpayers can furnish or update their bank account details by filing a Non-Core Amendment on the GST portal:

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

Since bank account details fall under non-core fields, no approval from the proper officer is required.

Automatic Dropping of Cancellation Proceedings

Once the bank account details are successfully furnished:

• The system will automatically drop the suspension or cancellation proceedings
• GST registration will be restored without any further action

Manual Option to Drop Proceedings

In case the system does not drop the cancellation proceedings on the same day:

• The taxpayer may manually initiate the process by clicking
  “Initiate Drop Proceedings”

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

Exempted Categories under Rule 10A

The requirement to furnish bank account details is not mandatory for:

• OIDAR (Online Information and Database Access or Retrieval) taxpayers
• NRTP (Non-Resident Taxable Persons)

Exception

If an OIDAR taxpayer has appointed a representative in India, furnishing bank account details becomes mandatory.

Conclusion

Rule 10A plays a crucial role in strengthening GST compliance by linking registrations with verified banking channels. Since suspension under this rule is automatic and system-driven, taxpayers must ensure timely furnishing of bank account details immediately after registration.

Key takeaway:

Delay in furnishing bank details can lead to automatic suspension of GST registration and serious business consequences.