Mandatory Bank Account Details Submission Under GST

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Mandatory furnishing bank account details by registered taxpayers under Rule 10A of the Central Goods and Services Tax Act, 2017. Let's Understand What Is Rule 10A Under CGST Act, 2017. 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. So all the registered taxpayers are required to furnish their bank account details within the prescribed period of time. Mandatory Bank Account Details Submission as Per Law: All Registered Taxpayers are required under the provisions of CGST Act, 2017 and the corresponding Rules framed thereunder to furnish  their bank Account  Details within 30 days of the grant of registration or before the due date of filing GSTR-1/IFF, whichever is earlier. Taxpayers are therefore advised to promptly furnish the...
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GSTN Blocks Rs 14,000 Crore ITC of 66,000 Taxpayers

GST Network on Tuesday said it has blocked Rs 14,000 crore worth of input tax credit (ITC) of 66,000 businesses registered under GST. Responding to social media posts based on an RTI reply about the Rs 6.14 lakh crore of ITC blocked under Rule 86A of GST laws, GSTN tweeted that the figure includes erroneous data entries made by the taxpayers.

“ITC of approximately Rs 14,000 crore involving 66,000 taxpayers’ stands blocked as on date. This is only 0.38 per cent (approximately) of average ITC utilized by all taxpayers in a financial year,” tweeted GSTN, the company that handles the technology backbone for goods and services tax.

The government had introduced Rule 86A in GST rules in December 2019 giving powers to taxmen to block the ITC available in the electronic credit ledger of a taxpayer if the officer has “reasons to believe” that the ITC was availed fraudulently.

There are currently 1.32 crore taxpayers registered under GST.

It is pertinent to note here that Rule 86A about ‘conditions of use of amount available in electronic credit ledger’ was inserted in the CGST Rules, 2017 was inserted by the CGST (Ninth Amendment) Rules, 2019 w.e.f. 26-12-2019. 

Rule 86A about ‘conditions of use of amount available in electronic credit ledger:-

1. ITC has been taken on basis of Tax invoice or Debit note but:

    (a) issued by a registered person who has been found not conducting any business.

    (b) without receipt of goods or services or both.

2. ITC has been taken on basis of invoice but GST amount has not been paid by the supplier to government.

3. Supplier found non-existent or not conducting business from its registered place.

4. Registered person availing any credit of input tax is not in possession of a tax invoice or debit note.

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