HomeNotificationNew GST Auto-Suspension Rule for Bank Account Non-Updation Effective From 5 December...

New GST Auto-Suspension Rule for Bank Account Non-Updation Effective From 5 December 2025

GSTN has implemented a strict automatic suspension mechanism under amended Rule 10A of the CGST Rules. Every newly registered taxpayer must furnish their bank account details within a fixed compliance window. If the mandated details are not uploaded in time, the registration will move into auto-suspension mode without any prior notice.

This provision applies to all standard registered taxpayers except specific exempt categories.

Mandatory Timeline Under Rule 10A

A newly granted GST registration now triggers the following compliance clock:

RequirementTimeline
Furnish Bank Account DetailsWithin 30 days of GST registration approval OR before filing the first GSTR-1/IFFwhichever is earlier
Filing of Returns without Bank UpdateNot permitted
Non-Compliance ResultImmediate auto-suspension of GST registration

This means the suspension can activate even before a taxpayer begins filing returns if the 30-day window lapses.

What Happens When Auto-Suspension Triggers

Once GSTN classifies the registration as non-compliant:

  • Registration status changes to “Suspended”
  • E-invoice generation is blocked
  • E-way bill generation is restricted
  • GSTR-1 filing becomes disabled
  • Outward supplies legally cannot be made during suspension
  • ITC to buyers is impacted due to non-reflecting invoices

Thus, suspension leads not just to compliance penalty, but operational paralysis.

Detailed Restoration Procedure

If your registration has been auto-suspended, follow this process:

Step 1: Login to GST Portal

Go to the taxpayer dashboard.

Step 2: Navigate

Services → Registration → Amendment (Non-Core Fields)

Step 3: Upload Bank Details

  • Valid bank account number
  • IFSC
  • Document proof
    • Bank statement / passbook (first page) / cancelled cheque

Step 4: Automated Dropping of Proceedings

Upon approval, the suspension and cancellation proceedings should automatically disappear.

Step 5: If System Does Not Auto-Drop

Use portal option:
Initiate Drop Proceedings → Submit Request → Track Approval

The registration status will revert to ‘Active’ once validated.

Categories Exempted From Rule 10A Requirement

The following registrants are not required to furnish bank details under the 30-day deadline:

  • TDS deductors (Section 51)
  • TCS collectors (Section 52)
  • Suo-moto GST registrations
  • Non-resident taxable persons (NRTP)
  • OIDAR suppliers
    • OIDAR is exempt only if “Representative in India” is not appointed

Practical Checklist for Professionals

Action PointPurpose
Verify every newly registered client’s bank statusAvoid surprise suspension
Maintain internal tracker for 30-day windowEnsure deadline visibility
Pre-collect bank documents before applying registrationSame-day updation post-approval
Monitor GST portal notifications daily for clientsDetect suspension flags early
Avoid first GSTR-1 before bank details are uploadedFiling attempt will be blocked

Consequences of Non-Compliance Beyond Suspension

If continued non-updation persists:

  • Cancellation may follow after suspension
  • ITC to buyers becomes permanently ineligible
  • PAN may be flagged for risk-based scrutiny
  • Future registration approvals may face delays

Advisory Note

Account details update is no longer procedural but compliance-critical. Professionals must integrate bank verification within onboarding workflow to prevent any disruption in the outward supply chain.

Conclusion

Any new GST registration must now treat bank account furnishing as an immediate post-approval compliance task. The GSTN system has transitioned to automated governance, reducing discretionary intervention. Timely updation ensures uninterrupted business functioning and avoids suspension-based penalties.

Read More: How to file nil gst return – easy 5 steps guide by experts

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

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