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 into the government credit. They will also be able to avail themselves of the input tax credit of the GST, which was paid by them when purchasing the essentials for the smooth operation of their business. It should be noted that only such companies would be considered legal suppliers of goods and services that customers would easily approach.
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 operations in a location that may be their home or a residential area without registering it as a commercial place of business. This place may sometimes be owned by the person or even rented or leased for the conduct of the company. However, at times, it can also be found that such places are neither owned, rented, nor leased by the business entrepreneur who supplies goods or services.
In case of an owned property used for the running of a business or supply of goods and services, then a document that would authenticate or support the taxpayer’s ownership over such property or premises can be submitted with the concerned authorities at the time of Registration. However, if the same is taken on rent or lease, then a copy of the lease agreement or rental agreement must be submitted by him during Registration.
However, if the same is not rented, owned, or leased, then a consent letter or a No Objection Certificate (NOC) obtained from the real owner of the premises where the business is being run should be obtained. This letter should evidently state that the owner of the premises does not have any problem with the premises being used by the applicant or taxpayer for his business.
The GST Act does not provide a specific format for issuing consent letters, but it does state the need for them. 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 taxpayer or applicant runs the business, should be signed by the original owner of such premise. Such a consent does not need to be submitted on 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 the Consent Letter
Along with the consent letter, the applicant should also attach proof of the business address, such as a copy of the electricity or water bill, or a copy of the Municipal Khata, for the perusal of the GST Authorities, and provide the registration documents 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 select the option “Service” –” Registration” –’ ‘New Registration”.
- Now fill out the form and select the option Consent under the nature of possession of the premises.
- The consent letter, signed by the owner of the premises, should be uploaded in JPEG or PDF format, with a file size of no more than 1 MB.
Failure to Upload Consent Letter
If the applicant fails to upload the consent letter when applying for Registration, the GST Act verifying the form shall notify the applicant via email or phone. The applicant should then upload the consent letter. After this, the GST authorities or officer will confirm and proceed with granting the 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 _______________ to use the premises or address for 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:
