Advisory on Bank Account Validation on your GST Portal

Validate your Bank, or your GSTR-1 will get STOPPED – Advisory

GST dept notification alert

Your GSTR1 returns, will get blocked…if your current Bank account is not validated on GST portal.

Alert your accounts Department

And note… if your GSTR-1 is blocked… your customers will not get the GST ITC credit… and …. if they come to know of this… they “might” block your payments…..

Alert your accounts.

Regards,
Finsys MLG team

Source : https://tutorial.gst.gov.in/downloads/news/advisory_on_bank_account_validation_17april2023.pdf

Excerpts in a user friendly language

Advisory on Bank Account Validation

Dear Valued Tax Payers,

1. GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct.

Interpretation / Notes:

….. Govt was facing problems…. Over years…. Citibank closed down, Syndicate Bank got merged…. various other banks merged…. some cooperative banks closed down.

People also shift from bank 1 to bank 2 , due to credit limits or rate of interest

Government was facing problem…. how to send refund and how to take recovery … and infact how to validate that the GSTIN person is genuine or not…. Bank account validation helps in that also

How to solve  ?

2. The bank account validation status can be seen under the Dashboard→My Profile→ Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the
validation is performed for his declared bank account.

3. Post validation, any bank account number in the database would have one status out of the below mentioned four status types. The exact details of the accounts can be seen by hovering mouse over these icons in the Tax Payers’ dashboard in FO Portal.

Icon Description
Success
Failure
Success With Alert Remark
Pending for Validation

4. Whenever, the Tax Payer is shown ‘Failure’ icon with further details such as
– The entered PAN number is invalid.
– PAN not available in the concerned bank account.
– PAN Registered under GSTIN, and the PAN maintained in the Bank Account are not same.
– IFSC code entered for the bank account details is invalid.
In these cases, the Tax Payer is expected to ensure that he has entered correct bank
details and the KYC is completed by bank for his bank account.

5. Whenever, the Tax Payer is shown, the status of his bank account as ‘Success With Remark’ icon with details “The account cannot be validated since the bank is not integrated with NPCI for online bank account validation”, the Tax Payer should provide alternate bank account number so that it can be revalidated to expedite further online processes.

6. If the account status is shown as “Pending for Validation” then please wait since the account will be validated by NPCI.

7. The Tax Payer at any time can add/delete the bank account details and new account details will be validated.

Thank you for your cooperation.
Team GSTN

Additional Notes

The ISP-GSP  integrated Systems like Webtel, may also not be able to push the GSTR-1 data from your ERP, to the Government Portal.  Since the Portal will stop as a barrier due to Bank account non compliance.

Hence, please take early action on this immediately

How much time does it take ?

It takes just 30 to 50 seconds, or let us say less than 1 minute

so, do it now

Hence, please take early action on this immediately

Yes, You can do this yourself, it is easy and it is fast .. … very fast…

 

Link 1 :  GST Dept published August 2024 : https://tutorial.gst.gov.in/downloads/news/advisory_on_bank_account_validation_17april2023.pdf

link 2 : GST Dept portal published 2022 : https://tutorial.gst.gov.in/downloads/news/new_functionalities_compilation_may_2022.pdf

 

Bank Account validation GSTR1 stop alert … note.. your customers are going to be affected too…. if you dont solve this now.

 

Do this for all your smaller companies also

do this for all your less used small turnover / non moving State GSTIN also

Ideas and model clauses for the Audit Trail Qualifications…. in Audit Reports

Small Company with semi dormant ,  like non moving companies, with no operations….

 

As per the communication with the management,  company is maintaining books that are not in electronic mode,  and hence, audit trail maintenance is not required.

Small Company with semi dormant ,  like non moving companies, with no operations….

 

Please refer the below extracts from Audit Report in respect to Audit Trail (When Audit Trail not maintained through out the year) and advise is it correctly reported ?

Auditor’s Modified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the matter described in the Basis for Modified Opinion section of our report the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31/03/2024, and its Profit for the year ended on that date.

Basis for Modified Opinion

The Company has used accounting software for maintaining its books of account, which did not have a feature of recording audit trail (edit log) facility throughout the year details in respect of which has been reported in the clause (b), clause (g) and point (vi) of clause (h) in the last part titled as ‘Report on other legal and regulatory requirements’ of this report.

Report on Other Legal and Regulatory Requirements

This report doesn’t include a statement on the matters specified in paragraph 3 and 4 of the Companies (Auditor’s Report) Order, 2020, issued by the Central Government of India, in terms of sub section 11 of section 143 of the companies Act, 2013 since in Our opinion and according to the information and explanation given to us, the said order is not applicable to the company.

As required by Section 143 (3) of the Act, we report that:

We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books except for the matters stated in the point(vi) of clause (h) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
____
_____
______
______
The Modifications relating to the maintenance of accounts and other matters connected therewith are as stated in the clause (b) above on reporting under section 143(3)(b) of the Act and point (vi) of clause (h) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
___ ii__________ iii ____________ iv _______ v ___________ vi Based on our examination which included test checks and information given to us, the Company has used accounting software for maintaining its books of account, which did not have a feature of recording audit trail (edit log) facility throughout the year for all relevant transactions recorded in the respective software, hence we are unable to comment on audit trail feature of the said software.