Business persons who are supplying goods and services to consumers and have reached the threshold limit specified by the GST Act are expected to take registration under GST (Goods and Services Tax) in a mandatory manner. This will enable them to collect GST from consumers and deposit it to the government credit. They will also be able to avail of the input tax credit of the GST, which was paid by them while purchasing the essentials for the smooth conducting of their business. It should be noted that only such businesses would be considered legal suppliers of goods and services that would easily be approached by customers.
What is a Consent Letter under GST?
The article here discusses the meaning and format of a consent letter, which is nothing but an NOC or No Objection Certificate. Many business entities conduct their business in a place that may be their home or a residential area without registering such a place as a commercial place of business. This place may sometimes be owned by the person or even rented or taken on a lease for the conducting of the business. But at times, it can also be found that such places are not either owned or rented or taken on lease by the business entrepreneur who is making the supply of goods or services.
In case of an owned property used for the running of business or supply of goods and services, then a document that would authenticate or support the taxpayer’s ownership over such property or premise can be submitted with the concerned authorities during the time of registration. But if the same is taken on rent or lease, then the copy of the lease agreement or the rental agreement shall be submitted by him during the registration and for the purpose of the same.
But if the same is not rented nor owned or taken on lease then a consent letter or a NOC obtained from the real owner of such premise where the business is being run should be obtained. This letter should evidently state that the owner of the remise does not have any problem with the premise being used by the applicant or taxpayer for the purpose of his business.
The GST Act does not provide any specific format for the issue of consent letters and only states the need for the same. But it has been clearly stated that this should be in a written format.
The NOC or Consent Letter Signing
For the purpose of getting registration under GST, the NOC or the consent letter, which is obtained from the original owner of the premise in which the business is run by the taxpayer or applicant, should be signed by the original owner of such premise. It is not necessary that such a consent letter is submitted in stamp paper as the GST Act or law does not mandate the same. But if the GST officer directs an applicant to submit the consent letter on a stamp paper, then the applicant shall submit it on a stamp paper.
Additional Documents to be submitted along with Consent Letter
Along with the consent letter, the applicant should also attach the address proof of the business, like a copy of the electricity or water bill or a copy of Municipal Khata for the perusal of the GST Authorities and provide the registration duly.
Procedure for Uploading Consent Letter
- The applicant should first visit the official online portal of GST, ‘www.gst.gov.in’.
- Then the applicant should choose the option, ‘Services’ – ‘Registration’ – ‘New Registration’.
- Now fill out the form and select the option Consent under the nature of possession of the premises.
- And the consent letter signed by the owner of the premises should be uploaded in JPEG or PDF format with a size not more than 1 MB.
Failure to Upload Consent Letter
If the applicant fails to upload the consent letter while making the application for registration, then the GST act verifying the form shall intimate the same to the applicant via email or phone. The applicant should then upload the consent letter after which the GST authorities or officer shall verify and continue with the granting of registration to the applicant.
Example Format for Consent Letter
NO OBJECTION CERTIFICATE (NOC)
TO WHOMSOEVER IT MAY CONCERN
This has been issued to certify that ___________ (Owner Name), owning the property with the address _____________________________(Address), has allowed Mr./Mrs./Miss _________________ (Business Owner Name) to use the premise for the operation of his/her business.
I further state that I have no objection to allowing Mr./Mrs./Miss _______________ use the premise or address for the purpose of business and as their mailing address. This certificate has been issued for the purpose of availing registration under GST.
Sd/-
(Name)
Owner of the Property
Date:
Place:
