GST

All about Bank Validation Status on GST Portal

All about Bank Validation Status on GST Portal

Based on the new advisory of the GST Network, bank account validation was integrated with the GST system on 24th April 2023. The integration aims to provide accurate bank account details to all GST taxpayers. In this blog, we have discussed the advisory on GSTN’s new functionality. It includes steps to check a bank account validation status on the portal.

Overview of the GSTN advisory on bank validation status in GST

The taxpayers are directed to check bank validation for their GSTINs on the portal. The GSTN has, on 24th April 2023, released an advisory advising the taxpayers to cross-check the bank account validation in GST. A taxpayer must take suitable action based on the bank account validation status. The types of bank account validation status are as follows:

  1. Success
  2. Failure
  3. Success with remark
  4. Pending verification

The advisory has also intimated that the taxpayer can add or delete bank accounts later. For several reasons, bank account validation status is crucial, essentially for integrating bank accounts with the GST refunds into the correct bank account declared on the GST portal. Therefore, it is crucial for every taxpayer under GST to accurately report their active bank accounts on the GST Portal, especially if they have missed doing the same at the time of GST registration.

What is the rule for bank accounts in GST?

The GST portal allows taxpayers to report up to ten bank accounts. However, the addition of bank accounts or amendment after GST registration is considered a non-core amendment. Therefore, the details are auto-approved on the GST portal1 once submitted.

One must provide a bank account number, type of bank account, IFSC and bank branch address. It should be noted that entering the IFSC Code will populate the bank name and branch address by clicking the ‘Get Address’ button while applying for a non-core amendment. A copy of the cancelled cheque or passbook, or bank statement extract in JPEG or PDF Format with a maximum file size of 1 MB should also be uploaded. If the ‘basic details’ does not match the data registered with the PAN, then an error message appears. The user should then amend the name and date of birth per the PAN to validate the bank account successfully.

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How to check the bank validation status on the GST Portal?

Bank Validation Status can be checked with the GST system by following the below-given steps:

Step 1: The first step is to Log on to the GST Portal.

Step 2: The second step is to go to the “My Profile” option from the drop-down menu available in the dashboard’s top-right corner.

Step 3: Next, click on the “Bank Account Status” tab from the list appearing on the left side of the profile screen under the ‘Quick Links’ Section.

Step 4: The “Bank Account Status” screen appears with the list of bank accounts added.

The bank validation status can be viewed against every bank account as one of the four types explained in the article’s next section.

Step 5: If you scroll the mouse over the icon, then you can view the instructions of what the icon means. Suitable action can be taken depending on the respective status.

Note: The taxpayers can check their bank validation status after validation to check the GST-registered email address and mobile number.

Types of Bank Validation Status and Actions

Four types of bank validation status are based on the GSTN advisory on bank validation. Bank validation status includes ‘Success’, ‘Failure’, ‘Success with remark’ and ‘Pending for Validation’.

  1. ‘Success’ means the bank account declared with the GST system is successfully validated and correct, and there is no need for further action.
  2. ‘Failure’ means that the validation has failed due to an invalid PAN or PAN not being available with the bank or an invalid FSC or PAN registered for GSTIN is not the same as the PAN declared for the bank account. In case of failure in bank validation status, the following has to be done:
  3. Complete the KYC with the respective bank for the business account; or
  4. Re-try validating the bank account by mentioning the correct bank account details.
  5. ‘Success with the remark’ means that the bank account declared has not been integrated into the online payment authority, i.e., the National Payments Corporation of India (NPCI), for online validation. The action required in this case is to provide alternate bank account details on the GST portal to allow revalidation.
  6. ‘Pending for validation’ means the bank validation status is yet to be completed and is pending. No action is required in this case. One only has to wait for the account to be validated by the NPCI. The timeline for validation is defined.
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Conclusion

The advisory aids taxpayers in learning the steps to cross-verify the bank validation status of their respective bank accounts on the GST portal. Wrong or invalid bank details shall result in a delay in compliance.

FAQs

  1. What is the reason for bank validation failure?

    Common reasons for bank validation failure are:
    a) Invalid PAN number
    b) PAN not available in the concerned bank account
    c) PAN registered under GSTIN and PAN maintained in the bank account are not the same.

  2. What to do if bank validation fails?

    If the bank validation status fails, you can choose a different bank account from the “Select Account Number” drop-down list and add a new bank account or rectify the existing bank account details by filing a non-core amendment application of registration and then updating the Bank Account.

  3. How many days does it take for bank validation?

    It takes 10 – 12 working days for bank validation to take place.

  4. What is the validation of bank account details?

    Validation of a bank account is verifying that the bank account number and account details are valid before a transaction is processed.

  5. How long will updating bank details on GST Portal take?

    The bank details should be uploaded on the GST Portal within 45 days from the grant of registration or the due date of the first GSTR 3B, whichever is earlier.

  6. Is it mandatory to add a bank account in GST?

    Yes, it is mandatory to add a bank account in GST.

  7. Can I add a savings bank account in GST?

    Yes, you can add a savings bank account in GST.

  8. How many bank accounts can be added to the GST portal?

    Up to ten bank accounts can be added to the GST Portal.

  9. What happens if a bank account is not added to the GST portal?

    If a bank account is not added to the GST portal, it will prompt to comply with the criteria underlined in Rule 10A.

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References

  1. https://www.gst.gov.in/

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