Important Update on Bank Account Validation for GST

Attention GST Taxpayers! Important Update on Bank Account Validation for GST

GSTN Issued Advisory on Validation of Bank Account Details While Adding Bank Account. The Goods and Services Tax Network has implemented a new validation process for updating bank account details during non-core amendments. Here’s a quick guide to ensure you follow the updated process smoothly:  Steps for Bank Account Validation:

Steps to add Bank Details on GST Portal : GST Portal New Advisory

1. Update Bank Details: Begin by entering your new bank account details on the Goods and Services Tax portal.
2. Click “VALIDATE ACCOUNT DETAILS”: You must validate the entered account details by clicking the “Validate Account Details” button.
3. Validation First, Save Later: The “Save” button will remain disabled until the account details have been successfully validated.
4. Activate the Save Option: Once the account details are validated, the “Save” button becomes active, allowing you to proceed and finalize the update.

Failed Bank Account Validation:

Follow these steps to ensure your bank account updates are processed without delays and your Goods and Services Tax records remain up-to-date. Stages When Bank Account Details Are Sent to Public Financial Management System for Validation: Bank account details are sent to Public Financial Management System for validation during the following stages:

• Refund Application: When the taxpayer files for a refund.
• Bank Account Update: When the taxpayer updates their bank account details.
• Form GST RFD-05 Issuance: When the Tax Official issues Form GST RFD-05.

Bank validation may fail for the following reasons:

• Invalid Bank Name: The bank name entered might be incorrect.
• IFSC Code Mismatch: The entered IFSC code doesn’t match the one associated with the bank.
• Inactive IFSC Code in Public Financial Management System: The entered IFSC code is inactive in the PFMS database.
• Non-existent IFSC Code in Public Financial Management System: The IFSC code does not exist in the PFMS system.

Bank Validation Status Showing as “Failed” — What Should You Do?

If your bank validation status is marked as “Failed”, you can:

• Choose a Different Bank Account: Select a different account from the “Select Account Number” drop-down list.
• Add a New Bank Account / Rectify Details: File a non-core amendment application to update or correct the bank account details.

How to Update Bank Account Details if Validation Fails:

To update bank account details after a validation failure:

• Login to the Goods and Services Tax Portal.
• Navigate to Services: From the dashboard, navigate to Services > Registration > Amendment of Registration Non-Core Fields.
• Update Bank Account: Add a new bank account or correct existing bank account details as required.
• Validate: After updating, click on “Validate Account Details” and follow the steps to ensure successful validation.

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