Opening a current account without GST registration is possible for small businesses, startups, or freelancers with low turnover (typically under ₹20–40 lakhs). While many banks prefer GST, you can use alternative proof of business documents—such as Udyam Registration, Shop and Establishment License, or Trade License—along with KYC documents to open an account with banks like AU Small Finance Bank or HDFC Bank.
Can we open a Current Account without GST? Yes, you can open a Current Account without GST.
While it is not a necessity for opening a current bank account, having a GST registration can benefit business operations. It simplifies the tax structure, lowers business expenditures, ensures compliance, and contributes to the growth of the economy.
To register a proprietorship firm without GST in India, you need to follow these steps:
Your GST registration may be suspended if you don't submit your bank account details on time. Make sure to provide this crucial information within 30 days of registration, or before filing outbound supplies. Neglecting this requirement could lead to serious disruptions in your operations.
If you don't register for GST and are required to, you may have to pay GST on sales made since the date you were required to register. This could happen even if you didn't include GST in the price of those sales. You may also have to pay penalties and interest.
PAN card, Aadhaar card and photographs of all authorised signatories. (An authorised signatory is the person authorised by the taxpayer on his behalf to carry out the requirements in the GST portal.) Proof of appointment of authorised signatory. Taxpayers photograph.
Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
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While it isn't mandatory for sole proprietors to have a current account, the majority prefer to use one for their businesses. The reason is simple – current accounts offer multiple benefits, tools, features, and services that are crucial for effective business management.
Bank/s, that have not provided CC/OD facility/ies to customer requesting for current account, cannot open current account of that customer or collection account. However, Non Lending Bank/s may open Collection Account of the customer if the customer has availed other credit facilities but not CC/OD.
Businesses with annual sales of Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST. If the turnover exceeds the allowed threshold, there is a penalty for failing to register under GST.
1. Is it mandatory to add a bank account? No, it is not mandatory to add a bank account. Details to be entered in Bank Accounts tab has been made optional and non-mandatory w.e.f. 27th Dec 2018.
You must register for GST if:
Apart from the Udyam Registration Certificate (URC), the three mandatory documents to open a current account include: PAN card. GST registration (active for more than 3 months) Aadhaar linked with your mobile number (for OTP verification)
It also clarifies that while GST affects goods and services transactions, it does not apply to the operation of a Current Account, which is essential for business transactions.
Can I generate an e-Way Bill without a GST number? Yes, unregistered dealers can now generate e-Way Bills without a GST number by enrolling on the e-Way Bill (EWB) portal using Form ENR-03. After successful enrollment, they will receive a 15-character Enrolment ID, which acts as a substitute for a GSTIN.
There are really only two circumstances where customers are exempt from paying GST. The first is if it falls under the basic exemptions such as basic food, sales at duty-free and some medicines for example. The other circumstance is when a business is small enough that they don't have to register for GST credits.
Registration under GST is a legal requirement for businesses. The CGST Act 2017 specifies minimum turnover criteria for registration (Rs 40 lakhs for goods and Rs 20 lakhs for services). Still, certain specific businesses are required to register under the GST, irrespective of their annual turnover.
You may be eligible to receive the GST/HST credit and any related provincial and territorial credits, even if you have no income in the year.
GST registration is mandatory for all eCommerce Sellers Citizen can apply for New GST by Registrating online without Visiting the Govt. office.
You have a choice to register or not if it's less than that. You must register for GST if you reach the $75,000 turnover threshold or if it looks likely that you will exceed it. Once you've passed the turnover threshold, you must register within 21 days.
You have to start charging GST/HST on the supply that made you exceed $30,000. You exceed the $30,000 threshold 1 over the previous four (or fewer) consecutive calendar quarters (but not in a single calendar quarter).
Heavy Penalties and Fines
If you are liable to register for GST but fail to do so, you are considered in violation of GST law. As per the GST Act: A penalty of ₹10,000 or 10% of the tax due, whichever is higher, is applicable. If tax evasion is found to be intentional, the penalty can go up to 100% of the tax due.