To carry out various schemes under GST the fraudster have been using the GST registration to carry on the various malpractice like taking registrations (Other Persons) and issuing fake invoices (Without actual Supply). To avoid revenue leakages or safeguard the honest taxpayers, CBIC has come up with a provision to Link Bank account details with GSTIN.
Every Bank Account may not have GSTIN but every GSTIN holder must have Bank Account
'Every current Account holder having a Business is not required to hold GSTIN'. Since the business can be of mere exempt supply wherein the registered taxpayer may not be eligible for GST or Scale of business is such which does not requires GST Registration.
However once a person initiates a business and is also liable for GST Registration it would be a rare possibility wherein the business could be conducted without the use of Banking Channel.
What is Rule 10A of CGST Rules 2017?
So department came up with a provision for link bank account under GST vide Rule 10A which require a registered person, except the one reregistered under Rule 12 (Suo moto registration by proper officer) & Rule 16 (registered person liable for deduction of TDS & TCS under GST) to get their bank accounts linked to GSTIN within 45 days from date of grant of registration or due date of GSTR as required under Section 39 of CGST Act ,whichever is earlier
What does recent notification states?
Further vide notification 35/2021-CT dated 24-09-2021 has mandated that the bank accounts linked as per the rule mentioned shall be in the name of such registered person only also same shall be linked with PAN. Also In cases of Proprietorship Business the Bank account shall be linked with only the Pan card of the proprietor but also with Aadhaar card of the proprietor.
So every registered person shall link their bank details while applying for registration or before filing their returns under GST.
Note that Rule 21 (d) of CGST Rules 2017 provides a ground for cancellation on non-compliance of Rule 10A within the specified time limit.