What changed
RBI, in consultation with CBEC, mandates that e-payment software of banks nominated under EASIEST must feature drop-down menus for account head codes and pre-populated assessee fields from the Core Banking Solution, with no manual entry allowed except for tax amounts. This follows CAG observations on erroneous classifications impacting revenue distribution. Banks must implement these changes to participate in the new EASeR system; otherwise, they must use manual receipt routing via FPBs.
What it means for you
Banks must upgrade their e-payment platforms to enforce systemic checks, reducing manual errors in tax classification. This ensures accurate revenue sharing between Centre and States and aligns with the upcoming EASeR framework. Non-compliant banks face operational restrictions, potentially increasing manual processing costs.
What you must do
- Update e-payment software to include drop-down menus for all Central Excise and Service Tax account head codes with full descriptions.
- Integrate Core Banking Solution to auto-populate assessee details from Assessee Code Master/Directory, blocking manual entry.
- Ensure only tax amount fields allow manual input, with automatic calculation of total taxes.
- Add a facility for taxpayers to accept, modify, or reject entries before final authorization.
- Prepare for EASeR implementation by meeting these mandatory changes to avoid reverting to manual FPB routing.
Who it affects
Nominated banks under EASIEST (e.g., SBI, PNB, ICICI, HDFC, etc.), Taxpayers making Central Excise and Service Tax e-payments, Central Board of Excise and Customs (CBEC), e-PAO systems and EASeR project teams
Why did RBI mandate drop-down menus for tax payments?
Following CAG observations of erroneous classifications in large-value Central Excise duties affecting revenue distribution, RBI and CBEC decided to enforce systemic checks to prevent manual entry errors.
What happens if a bank does not implement these changes?
Non-compliant banks cannot participate in the EASeR system and must route transactions through manual receipt processes using FPBs, increasing operational burden.
Can taxpayers manually enter account head codes after this change?
No, account head codes must be selected from a drop-down menu with full descriptions; manual entry is prohibited except for the tax amount.