All About Bank Validation Status on GST Portal

Bank account validation has been integrated with the GST system based on a new advisory from the GST Network (GSTN) on 24th April 2023. It ensures the accuracy of the bank account details for all kinds of GST taxpayers. This article further explains the advisory on the GSTN's new functionality, including the steps to check the bank account validation status on the portal.

Overview of the GSTN advisory on bank account validation in GST

The advisory has directed taxpayers to check bank validation for their GSTINs on the portal. The GSTN released the advisory on 24th April 2023, advising taxpayers to cross-check the bank account validation in GST. The taxpayer must take suitable action or wait, depending on the bank account validation status. Following are the types of bank account validation status-

• Success
• Failure
• Success with remark
• Pending for verification 

The advisory also informs that taxpayers can add or delete bank accounts later. Bank account validation in GST is crucial for several reasons. Most importantly, integrating bank accounts with the GST system allows the seamless online processing of GST refunds into the correct bank accounts declared on the GST portal. Hence, every taxpayer under GST must correctly report their active bank accounts on the GST portal, especially if they 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 declare up to ten bank accounts. Adding bank accounts or amending them after GST registration is considered a non-core amendment. Hence, once the details are submitted, these shall be auto-approved on the GST portal.

You must provide the bank account number, type of bank account, bank branch address, and IFSC. Note that if you enter the IFSC code, you can populate the bank name and branch address by clicking the 'Get Address' button while applying for a non-core amendment. 

Also, upload a copy of the cancelled cheque or extract of the passbook or bank statement (with the first and last page) in JPEG or PDF format, ensuring a maximum file size of 1 MB.

An error message appears if the date of birth or name mentioned under the 'Basic Details' tab does not match the data registered against the PAN. The user must then amend the name and date of birth as per PAN to successfully validate the bank account.

How to check bank validation in the GST portal?

Follow the steps below to check the bank account validation status with the GST system. 

Step 1: Log in to the GST portal.

Step 2: On the top-right corner of the dashboard, click on the down arrow against the account name. After that, click on the 'My Profile' option from the drop-down menu, as shown below.

Step 3: Click on the 'Bank Account Status' tab from the list appearing on the left-hand 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.

Users can also view the validation status against every bank account as one of the four types explained in the article's next section.

Step 5: If the user hovers the mouse over the icon, they can view the instruction of what the icon means as follows. They can take action suitably, depending on their respective status.

Note: The taxpayers can check their GST-registered email address and mobile number to learn the status soon after validation is carried out to confirm the status.

Types of bank account validation status and actions

There are four types of bank account validation status based on the GSTN advisory on bank account validation. These include ‘Success’, ‘Failure’, ‘Success With Remark’ and ‘Pending for Validation’.

Every icon has a particular meaning, and users must or need not act, as explained in the table below.

Summing up, the advisory helps all taxpayers learn the steps to cross-verify the validation status of their respective bank accounts on the GST portal. Any wrong or invalid bank details shall leave scope for delay in compliance.