Background:
Earlier, the 50th Meeting of the GST Council was held on July 11, 2023 in New Delhi, wherein it was recommended to amend Rule 10A of the Central Goods and Services Tax, Rules, 2017 (“the CGST Rules”) to strengthen the registration process and to deal with the menace of fake and fraudulent registrations effectively.
The above-mentioned recommendation has been notified vide the following notification:
Notification:
The CBIC vide Notification No. 38/2023 – Central Tax dated August 04, 2023 has issued ‘the Central Goods and Services Tax (Second Amendment) Rules, 2023’ to further amend the CGST Rules in to order to align with recommendations of the 50th GST Council Meeting held on July 11, 2023, in the following manner:
In the said rules, in rule 10A, for the portion beginning with the words and figure “as soon as may be, but not later than forty-five days” and ending with the words “in order to comply with any other provision” the following shall be substituted, namely:-
“within a period of thirty days from the date of grant of registration, or before furnishing the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using invoice furnishing facility, whichever is earlier, furnish information with respect to details of bank account on the common portal”.
Impact of the Notification:
Registered persons will be required to furnish details of their bank account (in the name and PAN of the registered person) within 30 days of grant of registration or before filing the statement of outward supply in Form GSTR-1/IFF under Section 37 of the CGST Act, whichever is earlier.
The Council has now notified to declare bank details even before filing of Form GSTR-1. This change will help Government to safeguard its revenue.
The Notification can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/08/Notification-No.-38-2023-Central-Tax-dated-August-04-2023.pdf
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