GSTN Advisory on Bank Account Validation for Error-Free Filings

The Goods and Services Tax Network (GSTN) has¬†announced the integration of bank account validation within the GST System in a recent advisory. This new feature aims to verify the accuracy of taxpayers’ bank account information, ensuring smooth transactions and preventing any¬†potential fraud.

GSTN Advisory on Bank Account Validation for Error-Free Filings

Seamless Integration with the GST System

The bank account validation functionality is now fully integrated with the GST System, allowing taxpayers to confirm the accuracy of their bank account information in a simple and efficient manner, to avoid situations or errors like ‘bank account verification failed’.

How to Check the Status of Your Bank Account Validation

To verify the validation status of your bank account, follow these easy steps:

i) Log in to the FO portal.

ii) Navigate to the Dashboard.

iii) Click on My Profile.

iv) Select the Bank Account Status tab.

By following these steps, taxpayers can quickly check their bank account validation status and ensure that their financial transactions are processed correctly.

Instant Notifications for Bank Account Status

Taxpayers will receive notifications about the status of their bank account validation via their registered email and mobile number. These alerts will be sent immediately after the validation process for the declared bank account has been completed, allowing taxpayers to stay up to date on their financial information within the GST System.

Understanding Validation Status Types

After validation, a bank account number will have one of four possible status types:

i) Success: The account has been successfully validated.

ii) Failure: The account could not be validated due to incorrect information or other issues.

iii) Success With Remark: The account has been partially validated with some remarks.

iv) Pending for Validation: The account is waiting for validation by NPCI.

Taxpayers can view detailed information about their account status by hovering the mouse over the icons in their dashboard on the FO Portal.

Addressing Failed Validation

If a taxpayer’s account validation fails, they will be shown a “Failure” icon along with details explaining the reason for the failure. Common reasons include:

i) Invalid PAN number.

ii) PAN not available in the concerned bank account.

iii) PAN registered under GSTIN and PAN maintained in the bank account are not the same.

iv) Invalid IFSC code for the bank account.

In such cases, taxpayers must ensure they have entered the correct bank details and completed their KYC with the bank for the respective account.

Handling ‘Success With Remark’ Status

If a taxpayer’s account validation status is “Success With Remark” with the following message: “The account cannot be validated since the bank is not integrated with NPCI for online bank account validation”, they should provide an alternate bank account number for revalidation to expedite further online processes.

Pending Validation

If the account status is “Pending for Validation”, taxpayers should wait as the account will be validated by NPCI in due course.

Updating Bank Account Details

Taxpayers can add or delete bank account details at any time, and the new account details will be validated accordingly.

Concusion: Smooth Experience

The incorporation of bank account validation functionality into the GST system is a significant advancement in the field of taxpayer compliance. The GSTN aims to simplify the filing process and reduce potential errors by providing real-time validation status updates and immediate notifications. This innovation will eventually lead to greater transparency and efficiency in the overall GST ecosystem, which will benefit both taxpayers and tax authorities.

GSTN Advisory (Update) dated April 24, 2023

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