A Complete, Updated & Detailed Guide for Taxpayers, CAs, Consultants, and Businesses

The Goods and Services Tax Network has enforced an automated suspension system for GST registrations where bank account details are not furnished within the timeline under Rule 10A of the CGST Rules in its recent compliance update.

The move significantly fortifies the ecosystem for GST by improving verification of KYC, preventing fake registrations, and reducing manual intervention from GST officers.

The detailed guidelines outline the new mechanism, implications for taxpayers, responsibilities, exceptions, and procedures to reinstate suspended registrations.

1. Regulatory Background: Why Rule 10A Matters

Rule 10A of the CGST Rules was notified to ensure that every newly registered taxpayer provides valid bank account details soon after registration.

The main motivations for this rule include:

       I.            Strengthening GST KYC norms

     II.            Bogus/fake invoicing networks prevented

  III.            Ensuring traceability of financial transactions.

  IV.            Simplifying registration confirmation

    V.            Reducing post-registration fraud

Earlier, this action was initiated manually by GST officers when the bank details were missing. Now, GSTN has automated this process to ensure 100% enforcement.

2. Mandatory Furnishing of Bank Details 

Under Rule 10A of the GST rules, every newly registered taxpayer is required to furnish valid bank account details within a specified time frame. This submission must be completed within 30 days from the date of registration or before filing the first GSTR-1 or IFF, whichever occurs earlier. The requirement applies to regular taxpayers, casual taxable persons, SEZ units, SEZ developers, Input Service Distributors, and even taxpayers who later update their bank information through non-core amendments.

However, the law also provides certain exceptions. Entities registered under TCS and TDS categories, as well as taxpayers who are registered suo-moto by the department, are not required to furnish bank details. These categories are exempt because they do not engage in outward taxable supplies that necessitate bank validation.

Overall, Rule 10A ensures that GST registrants provide authentic banking information early in their compliance journey so that the GSTN system can validate and monitor transactions effectively

3. Automatic Suspension of GST Registration

If a taxpayer does not provide bank account details within the prescribed time according to Rule 10A, suspension of GST registration will be automatically done without any officer's approval and notice from the GST portal. Once a GSTIN gets suspended, the following operational compliances become restricted for the taxpayer: filing GSTR-1 or GSTR-3B, generating e-invoices or e-way bills, issuance of invoices in some cases, and claiming input tax credit. Many of the regular GSTN activities also become unavailable during this period. Such suspension will be explicitly displayed at the dashboard of the taxpayer in order to inform them about the compliance gap. This is automated to remove the manual delay, ensure uniformity in the operation of Rule 10A, and detect non-compliant and fraudulent registrations used in ITC misuse cases.

What Restrictions Apply During Suspension?

• Filing of GSTR-1 and GSTR-3B
• Issuing invoices (in certain cases)
• Generating e-invoices and e-way bills
• Claiming Input Tax Credit (ITC)
• Accessing various GSTN portal functions

Purpose of Automating the Suspension Process

• Eliminates manual delays and officer dependency
• Ensures a uniform enforcement of Rule 10A
• Helps the system quickly flag and isolate non-compliant taxpayers
• Prevents misuse of fake or unverified registrations for ITC fraud

4. How to Restore a Suspended GST Registration

A suspended GST registration can be restored easily once the taxpayer submits valid and complete bank account details. After the bank information is updated, the GSTN system automatically validates the details in the backend and lifts the suspension without requiring any manual approval. The cancellation proceedings are dropped, the suspension flag is removed, and the GSTIN is reverted to “Active” status. This restoration typically happens quickly once the portal confirms compliance.

What Happens After Updating Bank Details?

• Cancellation proceedings are dropped
• Suspension status is cleared
• GSTIN becomes fully “Active” again

4.1 If the Status Does Not Update Automatically

In some cases, the GSTIN may not be restored immediately on the same day, even after providing correct bank details. When this happens, taxpayers can use the “Initiate Drop Proceedings” option available under:

Services → User Services → View Notices & Orders

5. OIDAR & NRTP Special Clarification

There has been an important clarification by GSTN on cross-border service providers:

5.1 OIDAR (Online Information and Database Access or Retrieval Services)

Bank details are not compulsory for OIDAR taxpayers unless they have:

Appointed an authorized representative in India

In such cases, furnishing Indian bank details becomes mandatory.

5.2  NRTP (Non-Resident Taxable Persons)

NRTP taxpayers are not required to furnish bank account details under Rule 10A by default.

This feature prompts the system to re-validate the compliance and restore the registration without requiring any officer intervention. It helps avoid delays and ensures faster activation of the GSTIN.

6. Step-by-Step: How to Furnish Bank Details on GST Portal

Follow these steps for uploading or updating bank information:

Step 1: Log in at www.gst.gov.in

Step 2: Go to:

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

Step 3: Select Bank Account Details

Step 4: Click Add and enter:

• Account number
• Account holder name
• IFSC code
• Bank name

Step 5: Upload supporting documents:

• Cancelled cheque
• Bank statement
• Passbook copy

Ensure the name matches the GST-registered entity.

Step 6: Submit amendment and track status under:

User Services → View Applications

Step 7: If suspended earlier

Use Initiate Drop Proceedings
to restore registration faster.

7. Consequences of Non-Compliance

If bank details are not furnished even after suspension, the portal may initiate cancellation of GST registration.

This can severely affect business operations:

• Inability to issue GST invoices
• ITC denial to customers
• Contractual breaches
• Legal and financial implications

8. Best Practices for Taxpayers & Professionals

Upload bank details immediately after registration

Don’t wait for the 30-day window to expire; add your bank account information as soon as the GSTIN is granted. Early submission removes the risk of an automated suspension and ensures uninterrupted GST operations from day one.

Ensure bank documents match the legal name

Make sure the account name on the cancelled cheque, passbook or bank statement exactly matches the GST-registered legal name (or is a recognised account for the business). Name mismatches are a common cause of validation failures and delays in activation.

Monitor the GST dashboard regularly

Check your GST portal dashboard frequently after registration and after submitting amendments. Suspension flags and notices appear prominently on the dashboard; early detection lets you resolve issues before they impact filing or invoicing.

Maintain all proof documents

Keep clear, stamped copies of the cancelled cheque, bank statements or passbook pages used for verification. Retain submission acknowledgements and the TRN of the amendment. These documents are useful if any departmental query or mismatch arises later.

Cross-check each GSTIN separately

If your business operates multiple GSTINs (different branches or states), treat each GSTIN as a separate entity for bank-detail compliance. Upload and verify bank details for every GSTIN to avoid individual suspensions that can disrupt parts of your operations.

Conclusion

The GSTN’s automated suspension under Rule 10A marks a significant shift toward digital, real-time compliance enforcement. Businesses must now proactively furnish bank details immediately after registration, as delays directly affect GST functionality.

This automation helps reduce fraudulent registration, improve the validation of KYC, and keep the GST ecosystem healthier.

Early compliance ensures a seamless and uninterrupted GST experience for both taxpayers and professionals.

FAQ

Q1. What is Rule 10A under GST?

Rule 10A mandates that every new registrant shall, at the time of registration or within thirty days from the date of registration, provide valid bank account details and this rule, coupled with other features, would contribute to strengthening the KYC norms, eliminate fake registration, and ensure the linkage of GSTINs with proper banking information.

Q2. Why did GSTN introduce automatic suspension?

The automation of suspension mechanisms was done to remove manual intervention and ensure uniform enforcement besides speedy identification of incomplete or potentially fraudulent registrations. It will help the system detect non-compliance in real time, especially misuse of fake GSTINs for ITC fraud.

Q3. What happens when a GSTIN gets suspended?

Once suspended, the GSTIN becomes partly inactive and the taxpayer cannot file GSTR-1 or GSTR-3B, generate e-invoices or e-way bills, or claim ITC. The suspension alert displays at the forefront of the relevant GST dashboard of the taxpayer until the said bank details are furnished.

Q4. How can a suspended GSTIN be restored?

A suspended GSTIN is restored automatically after the taxpayer updates their bank details through a non-core amendment. The system verifies the information, drops cancellation proceedings, and marks the registration as Active again, generally within a short time.

Q5: What if the suspension does not lift automatically?

If the GSTIN is not activated even after such updating of bank details, then the "Initiate Drop Proceedings" option under the menu heading Notices & Orders can be used by the taxpayer. This would trigger the system to re-evaluate compliance and reinstate the registration without the intervention of any GST officer.

Q6. Who is exempt from providing bank details?

Thus, furnishing of bank details will not be applicable in respect of TCS and TDS entities as also suo-moto registrations created by the department. Similarly, OIDAR and NRTP taxpayers need not furnish bank details unless an OIDAR provider appoints an authorised representative in India.

Q7. What are the risks of not updating bank details?

Non-updating of bank details may lead to permanent cancellation of GST registration. This makes the person unable to issue any GST invoices; this would further lead to a loss of ITC for customers, breach of contract, and other possible legal or financial consequences for the business.