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  7. Consent Letter For GST: Format and Key Requirements

Consent Letter For GST: Format and Requirements

Updated on: 06 Sep, 2024 11:43 AM

All the eligible taxpayers in the country are required to register their businesses under GST. The GST registration process requires you to provide multiple documents. One of the most important documents for GST registration is the proof of your office address. However, it is possible that you might not own the premises. In such a case, you need an NOC (No Objection Certificate) or a consent letter signed by the premises owner. This article explores all that you need to know about consent letters for GST, its format, and requirements.

Contents

Many businesses operate from home without a registered commercial address. In the case of owned premises, the taxpayer shall upload any document as proof of ownership during the time of registration. However, if the premises are to be used on rent, a valid rent/lease agreement should be uploaded.

In case premises are neither owned nor rented, the taxpayer shall furnish a consent letter at the time of submitting the proof of his place of business. A consent letter in such cases shall be in the nature of a no objection certificate from the owner that he has no objections to the taxpayer using his premises for the purposes of the business. There is no specific format prescribed under GST for a Consent letter, and therefore, any written document can be a Consent letter under GST.

An NOC or Consent letter is required to be submitted in the following situations -

  • If the property is leased
  • If the property is rented
  • If the property is shared (used by more than one person), for example, in a co-working space.

It is important to note that if you have a valid rent/lease agreement, then it is not mandatory to submit a separate NOC at the time of GST registration; however, in the case of the absence of a valid rent agreement, you must provide a consent letter.

The consent letter should be signed by the owner of the premises. In some cases, the GST officers may ask for a consent letter on stamp paper, which should also be notarized. However, the consent letter can be uploaded online without having to be printed on stamp paper. Therefore, if the GST officer asks for a printed copy, then the taxpayer can get it printed on stamp paper.

Given below are the steps to upload a consent letter -

  • Step 1: Go to the GST portal and go to 'Services' -> 'Registration' -> 'New Registration'.
  • Step 2: At the time of filling out the form, select 'Consent' under the nature of possession of premises in case the business location is on rent or in case the taxpayer is using a relative's premises. A consent letter is required to be signed by the owner of the premises.
  • Step 3: Attach the consent letter in PDF or JPEG format, but not larger than 1 MB.

While there is no specific format for a consent letter under GST registration, below is an example of how you can write a consent letter and what important information it should contain.

TO WHOMSOEVER IT MAY CONCERN

This is to certify that I ……………………..(Name of the owner), owner of the property …………………………………………………. (Principal address) have permitted and allowed …………………………. (Name of the Proprietor) for operating and conducting their business from the ADDRESS MENTIONED ABOVE.

I further state that I have no objection if …………………………. (Name of the proprietor) uses the address of the said premises as their mailing address.

This is no objection certificate issued to obtain registration under GST.

Owner of the property
Signature
……………………………. (Name of the owner)
Date: …….……….
Place: …………….

In case of failure to attach the consent letter and address proof at the time of filing the application of registration in Form GST REG-01, the application may be put on hold by the GST officer. In this regard, an email or a phone notification is sent to the applicant. In such cases, the applicant shall submit the consent letter along with the application.

Given below are the steps that you need to follow to upload the consent letter under GST registration -

  • Step 1. Visit the official GST portal and navigate to the GST login page.
  • Step 2. Click on the ‘services’ tab and select the ‘registration’ button.
  • Step 3. From the available options, select the ‘New Registration’ button. Once you have completed Part A of the registration form, a TRN (Temporary Registration Number) is generated, and you will have to fill out Part B of the form in the next 15 days.
    GST Registration
  • Step 4. In the next step, you have to fill out different portions of Part B of the GST registration form under the head principal place of business. Herein, you can find different fields like address, including PIN code, nature of premises, and contact information.
    GST Registration
  • Step 5. After filling out the form with your address and contact details, select the ‘consent’ option under the ‘Nature of Possession of Premises’ in case the business owner uses a rented space or the place of a relative to set up.
    GST Registration
  • Step 6. Now, you need to upload a digital copy of the consent letter signed by the owner of the business premises. You must upload the document in PDF or JPEG format with a size of less than 1 MB.

An NOC is crucial for business owners when registering for GST. Additionally, several other requirements must be met during the GST registration process. To ensure a smooth registration, it's advisable to seek expert assistance. Tax2win’s tax experts can guide you through the GST registration process and help you file your GST returns accurately. Get our GST services now!

Frequently Asked Questions

Q- What happens if you fail to submit a consent letter?

If a taxpayer does not submit the consent letter and address proof with their GST registration application (Form GST REG-01), the GST officer may place the application on hold. The taxpayer may then receive a notification via email or phone. Upon receiving this communication, the taxpayer must provide the consent letter along with the application.

Q- Is the trade name of the proprietor needed in the consent letter?

No, you don’t need to mention the proprietor's trade name in the consent letter. The consent letter should start by identifying the parties involved, including the name, address, passport number, contact information, date of birth, and contact information.

Q- What type of stamp paper is required for GST registration NOC?

Not all applicants need to submit the NOC on stamp paper; they can use regular paper. However, if the jurisdictional officer specifically requests it on stamp paper, then they must comply.

Q- Why is NOC required for GST registration?

An NOC or consent letter is required for GST registration for taxpayers who are not operating from their own premises or rented spaces. For example, if Mr. Ram lives with his parents in their flat and wants to register for GST for his chartered accountant practice, he will need a signed consent letter from his parents since he works from home and does not have a separate business location.

Q- Does a rent agreement need to be notarised for GST registration?

No, you do not need to notarize the consent letter unless the jurisdictional officer processing your GST registration application specifically requests it.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.