Bank Accounts Requirement for GST Registration

Documents for GST Registrations

Every person liable to obtain registration or seeking voluntary registration shall have to furnish the following documents.

1. Permanent Account Number (PAN)
2. Proof of Constitution of Business or Certificate of Incorporation
3. Identity and Address Proof of Stakeholders and promoters with their photographs
4. Identity of Authorised Signatory with photograph and proof of appointment of Authorised Signatory
5. Address Proof of Principal place of business
6. Details of Bank Account For GST Registration such as the name, address, bank statement showing a few transactions and copy of  a canceled cheque

Recently out of the above documents, the requirement to furnish the bank account details for GST Registrations has been relaxed by the GSTN Council. 

Thus while filling up the details for registration on the portal, the requirement for bank account details does not show up.

Now the Applicant has to first obtain his GST number after completing all formalities of Online GST registrations on GSTIN Portal and after the first login, he can add his bank account details vide amendment of non-core field.

Earlier the business entities were required to furnish the bank account details and thereafter the businesses could be registered under GST.  In case of small businesses say a proprietorship concern, for opening a bank account certain documents such as registration certificate issued by the tax authorities are also required. Thus in the case of these concerns, bank accounts could not be opened prior to registration of these businesses by the tax authorities. 

The obligation of bank account details for GST registration had delayed the process of registration thereby causing loss of business to these entities. 

The GSTN Council took note of these difficulties faced by the businesses and removed this prerequisite for registration.

Removal of the condition of provision of bank account for GST Registrations in the filing of online form for GST registration has helped in expediting the process of registration thereby enabling ease of doing business to the business entities. 

This Decision of the GSTN Council is highly welcomed, further hoping that the council will make such amendments from time to time, thereby simplifying the process of collection and payment of tax. Let’s see some more information on the Online GST Registration

The requirement for GST Registration:

Registration under any taxation system helps in identifying the taxpayer and ensuring tax compliance. Under the Goods & Service Tax (GST) regime, without registration, a person can neither collect tax from customers nor claim any credit of tax paid by him.

What is Benefit of GST Registrations?

1. Registration legally recognizes a person as a supplier of goods or services.
2. Registration legally authorized a person to collect tax from customers and pass on the credit of the taxes paid on the goods or services supplied, to the purchasers or recipients. 
3. Registration allows a person to claim the credit of the taxes paid by him on the inputs and input services. 
4. Registration has been made mandatory for every supplier of Goods whose aggregate turnover in the financial year exceeds rupees 40 lakhs in other states and exceeds rupees 20 lakhs in special category states. 
5. While for Supplier of Services the Limit is Rs 20 Lakhs and 10 lakhs respectively.

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