The Government Departmentis required to take registration as a normal taxpayer only if it makes a taxable supply of goods and/or services and in such cases, the registration shall be obtained on the basis of PAN but Bank account is not mandatory. However, if it is not making any taxable supply of goods and/or services, it is required to register only as a deductorof tax at source on the basis of TAN/PAN.
(FAQ 31: GOVERNMENT SERVICES)