Under the Goods and Services Tax system, every business that registers for goods and services tax must indicate its principal place of business as part of its GST application. If the principal place of business is not owned or rented directly by the applicant (for example, a family member’s house, shared office, or co-working space), the GST portal will request to submit a Consent Letter from the property owner.
This blog post explains what a Consent Letter is for GST registration, why it is needed, how to write a Consent Letter, and what additional documents need to be included to make sure the Consent Letter is accepted.
Introduction
GST registration is location-specific, which means that the tax authorities must know exactly where you are doing business. You could use proof of ownership (like a property tax receipt) or proof of a rental agreement, but a lot of small businesses and start-ups share the premises they are working out of, or at least are not in an actual rental agreement.
In this case, you will need a Consent Letter/NOC (No Objection Certificate) from the property owner. This letter acts as official permission to allow the applicant to use that address as their business address for the purposes of the GST registration only.
Because all property owners will have restrictions in their rental agreements and may have a restricted use, without the letter, your application may be put on hold or rejected by the GST officer.
What is a Consent Letter for GST Registration?
A Consent Letter is a written declaration by the owner of a property granting permission to another individual or entity to use the premises as their principal place of business for GST registration.
It acts as a substitute for a rent agreement or ownership proof and is particularly useful in cases like –
- Using family-owned property without a lease
- Operating from a friend’s or relative’s premises
- Businesses run from co-working/shared spaces
- Startups are avoiding formal lease agreements to save costs
Why is a Consent Letter Required?
The GST system ensures transparency by verifying business addresses. A Consent Letter –
- Confirms that the property owner is aware and agrees to its use for business registration
- Prevents disputes or false address claims
- Serves as valid proof in the absence of a rental agreement
- Helps businesses register even without formal leasing arrangements
Consent Letter Format for GST Registration
Here is an example draft format that you could use –
CONSENT LETTER FOR GST REGISTRATION
I, [Owner’s Full Name], S/o/D/o [Name of Father/Mother], the owner of the premises at [Complete address with PIN Code], consent to [Applicant’s Full Name/Business Entity Name] using the said premises as their principal place of business for the purpose of applying for GST registration.
I have no objection to my property being used for the said purpose
Owner’s Name –
Owner’s Address –
Contact Number –
Date –
Signature –
Note- The letter should be printed on plain paper, signed by the owner and provided with valid proof of ownership (an electricity bill, property tax receipt or registry document).
Documents Required Along With Consent Letter
When submitting a Consent Letter for GST registration, you must attach –
- Consent Letter/NOC – Signed by the property owner
- Proof of Ownership of Premises – e.g., electricity bill, property tax receipt, registry papers, or municipal khata copy
- ID Proof of Property Owner (in some cases, requested by GST officers)
- Proof of Business Activity – PAN, business incorporation certificate, or trade license (as applicable)
How to Upload a Consent Letter on the GST Portal?
To do this, follow –
- Login to the GST Portal
- Go to – Services → Registration → New Registration
- Fill in the applicant information like Business name, PAN etc.
- Under Principal Place of Business, choose the option for shared/consented premises
- Upload –
- Consent Letter (in PDF)
- Ownership of Property (utility bill, tax receipt etc.)
- Submit Application with DSC/Digital Signature, E-Sign, or EVC
- Copy and note the Application Reference Number (ARN) for tracking purposes
Legal Validity of Consent Letter
- A Consent Letter is legally accepted by GST authorities as long as it is signed by the rightful owner and supported by ownership proof.
- It is not equivalent to a rental agreement, but sufficient for GST purposes.
- If disputes arise later, the business may be asked to provide further clarification or enter into a formal rental contract.
Frequent Errors to Avoid
- Submitting unsigned or incomplete Consent Letters
- Uploading an outdated or unclear utility bill as proof of ownership
- Leaving out the full address in the Consent Letter
- Taking no notice when the name of the owner in the Consent Letter differs from the name on ownership documents
- Exclude proof of ownership at all (your application will be rejected)
Conclusion
Consent Letters for Online GST registration are simple documents, but they are an important document for a business that is operating from business premises that are not legally owned or leased by its operator. It allows a business to show compliance and avoid the cost of a legal lease. This issue is very important for smaller enterprises, startups, and family businesses.
With a reliable Consent Letter established in the proper template, and the right proof of ownership attached, all a business must do is supply proof completed, and the Consent Letter with their GST registration, with nothing exceptional impacting their registration unless the auditor decides otherwise.
References
https://tutorial.gst.gov.in/
https://cbic-gst.gov.in/
https://gstcouncil.gov.in/
https://www.gst.gov.in/
