Goods and Services Tax, people are becoming aware and more familiar with this these days. GST registration is necessary if the turnover exceeds the prescribed threshold or the proprietorship firm engages in interstate sales or e-commerce or wants to claim the input tax credit. However, any business entity can obtain a GST registration also on voluntary basis.
While applying for GST registration, it’s a must to submit the documents as per the directions of the department. There are scenarios where businesses must register under GST declaring a place of business which are neither owned nor rented out by them. It invokes the use of the consent letter.
Meaning of GST consent letter or NOC:
Many businesses are carrying out their work from home as they do not have a registered commercial place of business. If such premises on which work is being carried out is owned, then a document supporting the taxpayer’s ownership is to be uploaded at the time of registration. If the premises are rented, then a valid rent/lease agreement is to be uploaded. If it’s neither owned nor rented, then such taxpayers are required to submit a consent letter at the time of upload of their proof of place of business.
It is a No Objection Certificate (NOC) from the owner of the premises stating that he doesn’t have any objection to the taxpayer using the premises for carrying out business. Under GST, there is no specific format for the consent letter. It can be any written document.
Who must sign the consent letter?
The owner of the premises should sign a consent letter. In some cases, GST officers ask for a consent letter on a stamp paper, and the same should be notarized as well. However, one can upload the consent letter without even printing it on stamp paper. If a GST officer specifically asks for the consent letter to be printed on stamp paper, the taxpayer can get the needful done.
Other documents with consent letter:
The consent letter should be uploaded along with address proof of business like a Municipal Khata copy or an electricity bill.
Failure to submit consent letter:
If a taxpayer forgets to submit the consent letter and the address proof while filing the GST registration application in Form GST REG-01, the GST officer may put the application on hold. In such cases, the taxpayers may receive communication via email or phone. On receiving such communication, the taxpayer will be required to submit the consent letter with the application.
While applying for GST as a small business without any rented or own premises, it’s a must to submit the consent letter as the proof of business along with the electricty bill and/or municiple khata receipt- JSPCO
