Current account is the most popular form of bank account among businesses, corporates, firms or entities. Having a current account allows businesses to run as there is no upper limit to the number of transaction or the volume of transaction. Additionally Current account also allows overdraft facilities that helps the business to meet any capital requirements at any point in time.
And to carry any financial transaction it is always wise to have a current account but is a GST number necessary to have a current account. Let’s know
With an aim to turn India into a unified common market a single indirect tax GST is introduced. GST has subsumed different indirect taxes that the central and state government had levied. Different indirect taxes where imposed on the suppliers and consumers which brought in a lot of confusion and delayed the entire system.
Thus having a GST number is necessary for all businesses. And current account enables easy banking transactions among businesses making it widely popular. That said GST number is not required for opening current account.
Let’s Look At The Documents Required For Current Account Opening.
- Forcurrent account opening one would require
- An Identity proof other than Pan card such as Passport, Aadhaar card, etc. Pan card is mandatory for opening any bank account.
- Address proof: such as driving licence, voter id card and Adhaar card
- In case if you have a company then the documents for registration is also required.
- There is no deposit required toopen a current account.
But in case you wish to have your own GST number for the business you would need the details of a valid current account from any commercial bank of India.
What Are The Documents Required For GST:
- PAN card
- Any Jurisdiction details
- A valid Indian mobile number
- A valid email ID
- Current Account details. ( any commercial bank of the country)
- Bank details would include the IFSC code, address and branch name
- Places where the business would operate
- All prescribed documents and information
- At least one proprietor, partner, director, trustee, karta, a member with their corresponding PAN
- An authorised Indian signatory with valid details, including PAN
Now that we know opening current account is mandatory for getting a GST number. Let’s look deeper into a few facts about current account.
- Opening a current account can be done in commercial banks or in co-operative banks
- Amount can be withdrawn and deposited anytime in the banks making it the most sorted account for Businesses.
- In India the minimum balance required to open a current account is Rs.5000 to Rs.25000. The account holders can also withdraw money over and above the balance in the current account. This is known as the overdraft facility which helps the business with a constant flow of capital.
- With current account businesses can carry out operations smoothly and promptly. Deposit and withdrawal of cash can be done from any location at any branch of your current account. Incase if the money is deposited or withdrawn from any bank other than the home branch the account holder needs to pay a nominal fee.
Therefore it is now clear that having a current account is necessary to get a GST number and not otherwise.