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.
What is a Consent Letter for GST Registration?
A consent letter for GST, also known as a No Objection Certificate (NOC), is a document that allows a taxpayer to use premises for business purposes when they don’t own or rent the property.
Let’s say you are an online seller operating your business from your home, which you neither own nor rent. You want to register for GST to legally collect taxes from your buyers and pass on input credit. You must get a GST registration consent letter from the owner of your house. This letter confirms that they have no objection to you using the premises for business purposes.
Who is Required to Submit a Consent Letter?
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.
Who Must Sign the 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.https://www.gst.gov.in/
How 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.
Format of a Consent Letter Under GST Registration
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: …………….
FAQs
How does submitting a consent letter affect the overall GST registration process?
The consent letter, signed by the premises owner, is a legal document that authorises the taxpayer to conduct business activities at that location. Without it, the GST application may be denied.
How long should a GST consent letter be valid?
A GST consent letter should state the specific start and end date of authorisation, with renewal necessary upon expiration for ongoing compliance.