In today’s digital age, many entrepreneurs operate businesses remotely or from home, often without a dedicated office space. In such cases, businesses must register under GST by declaring a place of business, even if they neither own nor rent the premises. This is where a consent letter comes into play.
GST registration is essential for legal compliance, allowing businesses to collect taxes from customers and pass on the input tax credit. Only GST-registered businesses are officially recognized as suppliers of goods or services, making GST registration mandatory for selling on e-commerce platforms. If you need to verify a seller’s GST number, you can use the GST search tool.
This article explains the concept of a GST consent letter, who needs to sign it, and the correct format for submission during GST registration.
What is a GST Consent Letter or NOC?
Many businesses operate from home without a registered commercial office. If a taxpayer owns the premises, proof of ownership must be submitted during registration.
For rented properties, a valid rent or lease agreement is required. However, if the business operates from a space that is neither owned nor rented, a consent letter must be submitted as proof of the place of business.
A consent letter, also known as a No Objection Certificate (NOC), is a document from the property owner stating they have no objections to the taxpayer using the premises for business purposes. While GST law does not specify a mandatory format for the consent letter, it must be a written document confirming the owner’s consent.
Who Should Sign the Consent Letter?
The consent letter must be signed by the owner of the premises. In some instances, GST officers may request the letter to be printed on stamp paper and notarized. However, in most cases, businesses can upload a simple written document. If a GST officer specifically asks for a notarized version, the taxpayer must arrange for it accordingly.
Supporting Documents Required with the Consent Letter
Along with the consent letter, businesses must provide address proof, such as a Municipal Khata copy or an electricity bill, to verify the place of business.
How to Upload the Consent Letter for GST Registration
Step 1: Visit the GST portal and navigate to ‘Services’ → ‘Registration’ → ‘New Registration’.
Step 2: While completing the registration form, select ‘Consent’ as the nature of possession if the premises are used with the owner’s permission (such as a family member’s property). Ensure that the property owner signs the consent letter.
Step 3: Upload the consent letter in either PDF or JPEG format, ensuring that the file size does not exceed 1 MB.
By following these steps, businesses can successfully register under GST even if they operate from premises that they do not own or rent, ensuring compliance with tax regulations.
Format of a consent letter
CONSENT LETTER
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
Sd/-
Signature
……………………………. (Name of the owner)
Date: …….……….
Place: …………….
Download GST Consent Letter
Click the link below to download the GST Consent Letter in Word format:
Consequences of Not Submitting a Consent Letter
If a taxpayer fails to submit the consent letter along with address proof while applying for GST registration through Form GST REG-01, the GST officer may place the application on hold. In such cases, the applicant may receive communication via email or phone.
Upon receiving such a request, the taxpayer must promptly submit the consent letter to avoid delays in the registration process.
FAQs on GST Consent Letter
1. What is a GST Consent Letter?
A GST Consent Letter is a No Objection Certificate (NOC) from the owner of a premises, allowing a taxpayer to use the location as their place of business for GST registration.
2. Who needs to submit a GST Consent Letter?
Businesses operating from a place that is neither owned nor rented in their name must submit a consent letter from the property owner during GST registration.
3. Is there a specific format for the GST Consent Letter?
No, there is no predefined format for a GST Consent Letter. However, it must clearly state the owner’s consent, property details, and the taxpayer’s business information.
4. Does the GST Consent Letter need to be on stamp paper?
In some cases, GST officers may require the consent letter to be printed on stamp paper and notarized. However, in most cases, it can be submitted without stamp paper.
5. What documents should be submitted along with the GST Consent Letter?
Along with the consent letter, address proof such as an electricity bill or a Municipal Khata copy must be uploaded.
6. How can I upload the GST Consent Letter?
You can upload the consent letter in PDF or JPEG format on the GST portal while filling out Form GST REG-01. The file size should not exceed 1 MB.
7. What happens if I don’t submit the GST Consent Letter?
Failure to submit the consent letter may result in the GST officer putting your registration application on hold. You may receive communication via email or phone, requesting submission of the required documents.
8. Where can I download a sample GST Consent Letter?
You can download a sample GST Consent Letter in Word format by clicking [here].
9. Can I use my home address for GST registration?
Yes, you can use your home address for GST registration. If the property is owned, ownership proof must be submitted. If it is not owned, a consent letter from the owner is required.
10. Can I modify the details in the GST Consent Letter?
Yes, the details in the GST Consent Letter should be customized to match your business requirements and the property details.
