Auto Suspension of GST Registration Under Rule 10A: What Taxpayers Need to Do Right Now
Introduction
Rule 10A of the CGST Rules makes it compulsory for newly registered taxpayers to provide their bank account details shortly after getting their GST registration. The rule aims to curb fake registrations, strengthen KYC verification, and ensure that only genuine businesses operate under the GST framework.
GSTN has now rolled out a stricter system that automatically suspends GST registrations if bank details are not submitted within the required time. This guide breaks down the updated rule, system automation, compliance steps, and what taxpayers should do to avoid suspension.
1. What Rule 10A Requires
Every registered taxpayer must provide their valid bank account details:
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Within 30 days from the grant of registration, or
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Before filing the first GSTR-1 or IFF,
whichever happens first.
Who needs to comply
âś” Regular taxpayers
âś” Composition dealers
âś” Casual taxable persons
âś” SEZ units and developers
Who is exempt
❌ TCS collectors
❌ TDS deductors
❌ Suo-moto registrations
❌ OIDAR & NRTP (with an exception explained later)
2. Auto-Suspension of GST Registration
If a taxpayer does not upload their bank details within the deadline, the GST portal will:
→ Auto-suspend the GST registration
You can view the suspension order under:
Services → User Services → View Notices and Orders
What happens during suspension
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Filing of GSTR-1/IFF is blocked
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E-way bill generation stops
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Changes to core fields are restricted
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ITC to recipients may be flagged or blocked
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Business operations may face disruptions
This entire process is system-driven, with no officer approval required.
3. How to Add Bank Account Details
Bank details can be added online through:
Services → Registration → Amendment of Registration (Non-Core Fields)
You’ll need:
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Bank account number
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IFSC code
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Cancelled cheque / bank statement (as per portal format)
Once submitted, the details are updated in your registration profile.
4. Automatic Closure of Cancellation Proceedings
If the only reason for suspension was missing bank details, then:
→ The system will automatically drop the cancellation proceedings
once the bank details are added.
Your registration becomes active again without manual intervention.
5. When Auto-Drop Doesn’t Happen
Sometimes the automatic update may take longer. In that case, taxpayers can manually request closure:
Services → User Services → View Notices and Orders → Initiate Drop Proceedings
This option helps close the cancellation proceedings after the bank details are updated.
6. Special Cases & Exceptions
OIDAR & NRTP
Bank details are not mandatory unless:
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The OIDAR taxpayer selects “Representative Appointed in India – Yes”
In that situation, bank account details must be provided to ensure traceability within India.
7. What It Means for Taxpayers
Why This Matters
Not adding bank details on time can lead to:
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Automatic suspension of GST registration
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Inability to issue invoices properly
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E-way bill blockage
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Disruption of ITC for customers
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Possible cancellation of registration
Best Practices
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Upload bank details immediately after receiving your GSTIN
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Keep your cheque/bank statement ready
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Check notices regularly on the portal
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Ensure bank details are entered correctly to avoid delays
Conclusion
The auto-suspension rule under Rule 10A makes timely KYC compliance more crucial than ever. Submitting bank account details is now one of the first and most important steps after obtaining GST registration. With automated suspension and reinstatement features, taxpayers must stay alert and ensure compliance to avoid interruptions in business activities.