Consent Letter for GST Registration

Table of Content

Introduction

GST registration requires a consent letter for businesses without their own or leased premises. This is a formal No Objection Certificate (NOC) that authorizes the use of an address for both business activities and GST registration purposes.

In this blog, I explain why a consent letter is necessary, provide a sample consent letter template, explain the filing process, and share some important things to consider in order to have a smooth GST registration.

When a business operates through rented or leased property, a GST Registration Consent Letter is required for registration and to avail benefits under Goods and Services Tax (GST). The owner grants a No Objection Certificate (NOC), which permits the use of a specific site for a business with GST registration in mind. Such a document is usually crucial, particularly if the business does not own the property but instead rents or leases space there.

Include the property owner, tenant, and building address in the letter. If you plan to write consent about a parking space or an alleyway, the document should explicitly state that. We will do this by using the provided signatures. Without this letter, it is likely that the authorities will not process a request as they claim “no clear ownership or permission” from concerned owners.

When a Consent Letter is Needed:

The situation arises when the applicant uses a friend's or relative's property.
If the agreement for a rented property is unavailable, or if there's no formal lease in place.
Temporary or informal use of a commercial property occurs.
The absence of a consent letter can result in registration delays or rejections since the GST authorities mandate valid address proof.

Benefits

Legal Evidence: It serves as written proof of consent for the commercial use of property. This makes your GST compliant, and this saves you from any legal hurt.
Easy Registration: If you don't have a valid consent letter, the GST authorities may delay or even reject your registration.
Business-friendly: If a business does not own the property it operates from, they can use this letter of consent to register for taxes without having to own any real estate. This is especially useful for startups.
Audit Proof: During an audit, tax authorities may want to confirm the business address, and having a signed consent letter adds to the evidence that the business is operating legally from the stated location.
Proof of Legitimacy: A consent letter can serve as proof of a legitimate, mutual agreement between the tenant and the property owner, strengthening trust and transparency in business dealings.

No Objection Certificate (NOC)
Date: [Insert Date]
Place: [Insert Place]

TO WHOMSOEVER IT MAY CONCERN

This is to certify that I, [Owner's Name], the owner of the property located at [Property Address], hereby grant permission to [Business Owner's Name] to use the aforementioned property for business purposes and as the registered address for GST purposes.

I declare that I have no objection to the applicant using the premises for commercial activities, correspondence, and registration under GST.

We have issued this no-objection certificate to facilitate registration under GST.

Signature:
(Owner's Name)
(Owner's Address)
(Contact Number)

Visit the GST Portal: Navigate to www.gst.gov.in
Select Registration: Go to Services > Registration > New Registration.
Fill in Business Details: Provide your business and personal information.
Choose Nature of Possession: Select Consent under the "Nature of Possession" section.
Upload the consent letter: Attach the signed consent letter as a PDF or JPEG file (maximum size 1 MB).
Submit the Application: Complete the application and submit it for review.

In addition to the consent letter, you are required to submit additional documents that establish the primary location of the business.

For Owned Properties: Property tax receipts or recent electricity bills.
For Rented Properties: Lease agreements along with utility bills in the property owner's name.
For Consent-based Properties: The consent letter plus a utility bill or municipal tax receipt from the owner.

Failure to provide a consent letter or any other proof of address can make the GST registration process take time. In such cases, the GST authorities will write to the applicant and give an opportunity to upload the missing document. Early submission will get the registration done without further delay.

FAQs

Q1. Is a consent letter required for GST registration?

Yes. The lessee of the business premises is required to provide a No Objection Certificate (NOC) for GST registration. It is reasonable documentary evidence of the property owner's consent to surrender his land, which provides peace of mind regarding GST compliance on rented premises from a business perspective.

Q2. Can I draft my own consent letter, or is there a specific format?

The GST department does not support any rigid format. But make sure that the letter contains all obligatory data, including names, addresses, and approval for commercial use of property by its owner. It is advisable to consult with an attorney on the correct formatting.

Q3. What do I do if my landlord refuses to sign a consent letter?

Unless the landlord agrees, you cannot register for GST at that address. Either way, you will have to obtain the approval from your landlord, and if that does not work, then maybe it is time for business to find a new address.

Q4. Do You Need to Notarize Your Parental Consent Letter?

Indeed, notarizing your post-GST registration is optional, and you cannot burn consent letters. While notarizing the letter is a thoughtful touch, it is not a mandatory requirement.

Q5: Is the consent letter valid indefinitely?

Typically, the letter is valid until the owner withdraws consent or the applicant vacates the premises. It does not have a formal expiry date unless stated otherwise.