Businesses can operate from anywhere. It can operate from a physical location like a dedicated floor, building, rented room, or business owners home. Many times, small businesses or early startups choose to operate from their homes because they do not have a registered place of business. Business owners must register their companies and pay tax on profits earned if they fall within the tax bracket. The owners of such businesses who fall under the GST slabs, i.e., the taxpayers, must provide the consent letter for GST at the time of downloading their proof of establishment during GST registration. However, if the space is leased, a valid rental or lease contract must be uploaded.
In this article, we will see what a “consent letter for GST” is, its sample format, and the steps involved in getting one.
What Is a GST Consent Letter
A letter of consent from the owner or landlord of the property stating that they have no objections to starting or operating a business is referred to as a “no objection certificate.” A GST consent letter is a kind of no-objection certificate that needs to be uploaded during the GST registration of the business as proof of operation. It could be rental or lease agreement papers or consent letters if the business is run from an unregistered location or a personal residence. The consent letter can be prepared in any style; there is no set protocol or framework for doing so.
Who Must Sign the Consent Letter for GST
A GST consent letter needs to be signed by the property owner. The landlord of the property provides a GST consent letter confirming that they have no issues with the applicant’s use of the space. It is possible to upload the GST consent letter without printing it on stamp paper. However, the taxpayer can abide by a GST officer’s particular request to print the content letter on stamp paper.
Documents to Be Submitted With a Consent Letter
Along with the consent letter, the NOC (No Objection Certificate) letter must be accompanied by a copy of the Municipal Khata or an electricity bill that displays the company’s address if the NOC for GST registration isn’t enough.
Steps Involved in Uploading Consent Letter for GST
Here is the step-by-step procedure to upload the consent letter for GST:
| Step 1:Go to the GST website and select “Services” > “Registration” > “New Registration” to get started.
Step 2:Select “consent” under “Nature of Possession of Premises” on the form. When the property is either leased or owned by a relative of the taxpayer, this must be done. If the taxpayer owns the property, the consent letter must be signed by the taxpayer himself. Step 3:Upload your GST consent letter, which must be less than 1 MB in size and can be submitted in PDF or JPEG format. |
Sample Format of a Consent Letter for GST
As stated before, the consent letter for GST can be prepared in any style, and there is no set protocol or framework for doing so. A sample consent letter is shown below:
Sample 1:
| CONSENT LETTER OR NOC (No Objection Certificate) TO WHOMSOEVER IT MAY CONCERN The undersigned certifies that I . (Name of the owner), the owner of the property……….. (Principal address) have permitted (Name of the Proprietor) for conducting their business operations from the ADDRESS MENTIONED ABOVE. I also declare that I have no objection if ………………….. (Name of the proprietor) utilizes the said address for mailing purposes. It is a No Objection Certificate issued for GST registration. Owner of the PropertySd/Signature |
How to Download Consent Letter for GST
Any written document formally signed by the property owner granting permission to run the business from his premises can be obtained and submitted during the GST registration of the business.
The above format can be used with all the necessary details filled in.
What Happens if We Fail to Submit a Consent Letter
The consent letter must be sent by the taxpayer or the person filing for the GST. It’s possible that they will occasionally forget to do this, though. A notification from the GST officer must be sent to them via mail or phone in these circumstances. Then, without fail, they must remember to turn in the consent letter that has been properly signed.
Any business that needs to register for GST must show or provide documentation of its operational address at the time of registration. A written approval letter must be obtained from the landlord or property owner if the premises are leased. The same document in PDF format should subsequently be uploaded during GST registration.
If the business owner or taxpayer is the owner of the property, then, while enrolling on the GST portal, the consent letter must be signed by the business owner himself.
FAQson Consent Letter for GST
How do I write a GST consent letter
The consent letter can be prepared in any style; there is no set protocol or framework for doing so. The landlord of the property provides a GST consent letter confirming that they have no issues with the applicant’s use of the space. It is possible to upload the GST consent letter without printing it on stamp paper. However, the taxpayer can abide by a GST officer’s particular request to print the content letter on stamp paper.
Does the rent agreement need to be notarized for GST registration
For GST registration, you don’t require a notarized or registered agreement. On stamp paper, it can be printed. Additionally, the price is also low. All you have to do is have it printed on a stamped agreement for 100 or 200.
What is a legal ownership document in GST
A recent property tax receipt, a copy of the municipal khata, or a copy of an electricity bill are all acceptable forms of verification for the property. The ownership deed or other ownership document in the case of owned property, or any copy of a current rental or lease agreement (as required) in the case of rented or leased property
What happens if I don’t have a rental agreement for GST registration
In case you don’t have a rent agreement for GST registration, you must provide the consent letter for GST at the time of downloading your proof of establishment during GST registration.
How much rent is exempted from GST
Rental income that is less than Rs. 20 lakhs per year is exempt from paying GST. With effect from July 1, 2017, the GST has replaced all expenses for which these indirect taxes were previously imposed. GST is levied at a rate of 8% of the rent paid. It’s crucial to keep in mind that only commercial property rentals are subject to the GST; residential property rentals are not.
Is an 11-month rental agreement valid for GST registration
Yes, any period of time beyond 11 months is required for a valid rent agreement and for GST registration. The rental agreement for GST registration must be completed within 11 months.
Read More: