GST WEEKLY UPDATE : 35/2025-26 (02.12.2025)
1. GSTN Issues Advisory To Taxpayers For Updating Bank Account Details By 2nd December To Avoid Auto-Suspension Of GST Registration:
The Goods and Services Tax Network (GSTN) has issued a critical advisory calling upon all GST-registered taxpayers to update their bank account details on the GST Portal on or before 2nd December 2025. Failure to comply will trigger the auto-suspension mechanism of GST registration under the CGST Rules, potentially disrupting business operations across sectors.
Regulatory Background
Under Rule 10A of the CGST Rules, every registered taxpayer is required to furnish details of a valid bank account obtained in their name (PAN-based) within a prescribed time period from the date of registration.
Further, Rule 21A empowers the authorities to suspend GST registration for non-compliance with statutory requirements, including failure to furnish bank account details.
With the upcoming portal-level implementation on 2nd December 2025, the system will automatically verify compliance with Rule 10A and initiate suspension wherever required.
Why the Advisory Matters
GSTN has clarified that non-updation of bank account details will lead to the following consequences:
- Auto-Suspension of GST Registration
Taxpayers who do not furnish valid bank account details by the notified implementation date will face system-based suspension under Rule 21A.
- Business Disruption
During the suspension period, the taxpayer:
- Cannot issue tax invoices
- Cannot file returns
- Cannot make taxable outward supplies
- May face credit restrictions from vendors due to risk flags in GSTR-2A/2B
This may severely impact business continuity, vendor relationships, and cash flows.
- Possible Cancellation Proceedings
Extended failure to update details may result in initiation of cancellation of GST registration under Rule 22.
Read Also: GSTAT: Centre Notifies New Rules For GST Appellate Tribunal
GSTN’s Recommendation
GSTN has advised all taxpayers—particularly newly registered businesses, proprietorships, start-ups, and small entities—to:
- Log in to the GST Portal (www.gst.gov.in)
- Navigate to Services → Registration → Amendment of Registration (Core/Non-Core Fields)
- Update the PAN-based bank account, upload necessary proofs, and ensure accuracy
- Complete verification using DSC/EVC as applicable
GSTN has emphasised the need to complete this compliance well before 2nd December 2025 to avoid portal congestion and last-minute delays.
Practical Insights for Taxpayers
- Ensure that the bank account is in the same legal name as appearing on the GST registration.
- Avoid using personal or savings accounts; GSTN requires a business-linked account.
- Keep the following ready for upload:
- Cancelled cheque
- Bank statement/first page of passbook
- Once updated, monitor email/SMS for approval or queries raised by the jurisdictional officer.
Conclusion
The advisory from GSTN underscores the importance of timely compliance with Rule 10A to ensure seamless GST functioning and prevent avoidable disruptions. Given the strict system-driven suspension mechanism coming into effect from 2nd December 2025, taxpayers are strongly encouraged to update their bank account details at the earliest.For further information and updates, taxpayers may visit www.gst.gov.in.
2. AAR & Important Judgements:
(i) AAR On ITC – Capital Goods Used Outside Factory – Underground Cable Network – Not Immovable Property
(Applicant – Alleima India Pvt Ltd)
ITC is admissible on cables, wires, switchyard equipment, and related services used for laying underground transmission lines from the DISCOM substation to the factory, as these are movable and do not fall within the blocked credit restrictions of Section 17(5).
CBIC Circular 219/23/2024-GST – Ducts & Manholes as Plant and Machinery
Ducts, manholes, and similar transmission infrastructure qualify as plant and machinery, and ITC on such assets is not restricted, as clarified by Circular dated 26-06-2024.
Capitalisation & Depreciation Support ITC Eligibility
Capitalisation of the assets and non-claim of depreciation on GST component satisfy Section 16 conditions for availing ITC.
Ownership with GETCO Not Necessary for ITC
Even if ownership is not explicitly transferred to GETCO, the applicant’s capitalisation is sufficient for ITC; however, if assets later revert to GETCO, Section 18(6) reversal will apply.
SHORT SUMMARY
The Gujarat AAR in Alleima India Pvt Ltd held that ITC is available on capital goods, electrical equipment, underground cables, ducts, and related installation/supervision services used for laying a 2.78 km power transmission line from the GETCO substation to the applicant’s factory. The Authority held that these items are movable, form part of plant and machinery, and are not hit by Section 17(5). The AAR relied on CBIC Circular No. 219/23/2024-GST to affirm eligibility for infrastructure such as ducts and manholes. Since the applicant capitalised the assets and complied with Section 16 requirements, ITC cannot be denied merely because the assets are installed outside factory premises under GETCO policy, subject to reversal if ownership ultimately passes to GETCO.
Read Also: GST Revamp on the Horizon: What Businesses and Consumers Should Know
(ii) Hon’ble Karnataka Highcourt Decision Regarding SEZ Services – Zero Rating – Requirement Of Endorsement – Prospective Amendment:
(Applicant – MK Travels)
SEZ Officer endorsement u/r 30(4) of SEZ Rules, 2006 is not a mandatory pre-condition for zero-rated supply of services by a DTA supplier to an SEZ unit for the period prior to 21-09-2018.
- Zero-Rated Services – No Statutory Mandate of Endorsement Prior to 21-09-2018
For July 2017 to March 2018, Section 16(1)(b) of the IGST Act does not prescribe endorsement of invoices by SEZ authorities as a condition to claim zero-rating.
Rule 30(4) (post-amendment) requiring endorsement did not exist during the disputed period.
- Prospective Effect of Amendment to Rule 30(4)
The demand was raised solely due to non-submission of SEZ-endorsed invoices.
However, the requirement was introduced only via Notification dated 19-09-2018, effective 21-09-2018, and cannot be applied retrospectively.
- Circular Dated 12-09-2019 Cannot Apply to Earlier Tax Periods
The Revenue also relied upon the Circular issued in September 2019.
The Court held that the Circular post-dates the period in dispute, is clarificatory for the future, and cannot be applied backwards to raise demand for 2017–18.
- Demand Raised on an Incorrect Legal Basis
Since both the amended Rule and 2019 Circular were applied to periods when they were not in force, the demand is illegal and unsustainable.
- Relief Granted
Demand set aside. Court reiterated that substantial benefit of zero-rating cannot be denied on hyper-technical procedural grounds, especially when the procedure was not in the statute during the relevant period.
Issue
Whether endorsement of invoices by SEZ Authorised Officer under Rule 30(4) of SEZ Rules is a condition precedent for claiming zero-rated benefit on services supplied to an SEZ unit for the period July 2017–March 2018.
Held
No. Endorsement requirement was inserted only from 21-09-2018 and cannot be retrospectively imposed.
Key Findings
- Section 16 of the IGST Act does not impose endorsement as a statutory condition for services supplied to SEZ.
- The amendment to Rule 30(4) was introduced much later and cannot be applied to past periods.
- Circular dated 12-09-2019 also cannot govern transactions of 2017–18.
- Demand raised solely for lack of SEZ endorsement is contrary to law if such requirement did not exist during the relevant period.
- Authorities erred in retrospective application of procedural requirements that came into force later.
Ratio Decidendi
Prospective procedural requirements cannot be used retrospectively to deny substantive tax benefits such as zero-rating under Section 16 of the IGST Act. Impugned demand quashed. Petition allowed.
Read Also: GSTN Postpones Non-Editable Table 3.2 in GSTR-3B After Taxpayers’ Grievances
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