Consent Letter For GST: Format and Requirements

Know the format of a consent letter for GST, how to write it error-free, and where to upload it.
Business Loan
Apply Now
3 min
02 Aug 2024

A GST consent letter ensures transparency and legal compliance by establishing a clear understanding between the property owner and the business regarding the usage of the location for GST registration. This document is vital for obtaining a GST registration certificate, as it proves that the business has the legal right to operate from the specified address.

What is the meaning of the GST consent letter?

A GST consent letter is a crucial document required for Goods and Services Tax (GST) registration in India. This letter acts as a declaration by the property owner, granting permission for their premises to be used by another entity for business purposes. The GST consent letter is particularly important when a business operates from a rented or leased property, or when the premises are owned by someone other than the business owner. It aligns with the features of GST that aim to bring transparency and standardisation in tax compliance.

Who must sign the consent letter?

The consent letter under GST must be signed by the property owner or authorised representative of the property. In cases where the property is leased or rented, the landlord or property owner provides their signature, indicating their approval for the business to use the premises for GST registration purposes. If the property is owned by a company or an organisation, an authorised official from the entity must sign the consent letter. This signature confirms the authenticity and legal validity of the document, ensuring that the business can operate from the given address without any issues. This practice is rooted in the history of GST, where clear documentation ensures compliance.

Format of consent letter under GST

The format of a GST consent letter typically includes specific details such as the property owner's name, business name, address of the premises, and the nature of the agreement (rent, lease, etc.). It should also mention the period for which the consent is valid and any conditions attached to the usage of the property.  These aspects are aligned with the guidelines outlined in the GST structure in India to ensure a streamlined tax regime. The letter must be signed and dated by the property owner or authorised representative. The language should be formal and clear, ensuring that all parties involved understand the terms and conditions. This standardised format helps in maintaining consistency and legal clarity.

Download the GST consent letter


Downloading a GST consent letter template is straightforward and can be done from various online resources or official GST portals. These templates are designed to meet the legal requirements for GST registration and can be customised to include specific details relevant to the business and property owner. It's essential to choose a reliable source to ensure the template includes all the necessary information. After downloading, the template can be filled out, printed, and signed. This document is then submitted along with other necessary documents for GST registration. For efficient tax planning, businesses should also understand what input tax credit under GST is, for reducing liabilities.

Other documents with a consent letter

Alongside the GST consent letter, other documents may be required to complete the GST registration process. These include proof of business identity, such as the PAN card of the business, proof of the principal place of business like an electricity bill or property tax receipt, and proof of the authorised signatory’s identity and address. Additionally, in cases where a business is operating from rented premises, a rent agreement or lease deed is required. Bank account details, including a copy of the cancelled cheque or bank statement, may also be needed. These documents collectively establish the legitimacy and operational status of the business.

Steps to upload the consent letter

  • Log in to the GST portal using your credentials.
  • Navigate to the 'Services' section and select 'Registration'.
  • Choose the appropriate application form for new registration or amendment.
  • Upload the scanned copy of the signed GST consent letter in the specified section.
  • Attach other necessary documents, including identity and address proofs.
  • Review all the information provided and ensure its accuracy.
  • Submit the application after checking all entries.
  • Await verification and approval from GST authorities.

What happens when a consent letter is not submitted?

Failing to submit a GST consent letter can lead to the rejection of the GST registration application. The consent letter is a mandatory document that validates the legal right of a business to operate from a specific location. Without this letter, the GST authorities may not recognise the address as a legitimate place of business, resulting in complications and delays. This can impact the business's ability to operate legally and efficiently, as GST registration is necessary for various transactions, tax filings, and compliance. Additionally, non-submission may lead to penalties or fines.

Proof of the business’s primary location

Proof of the business’s primary location is essential for GST registration, serving as evidence of where the business is conducted. This proof can include documents like electricity bills, property tax receipts, or a lease agreement, clearly indicating the business address. These documents must be recent, typically within the last three months, and should bear the name of the business owner or the authorised signatory. The requirement for this proof ensures that the business has a physical location, which is crucial for legal and taxation purposes. It also helps in determining the jurisdiction for GST compliance. 

How is GST calculated?

  • Determine the taxable value of the goods or services.
  • Apply the appropriate GST rate (5%, 12%, 18%, or 28%) based on the product or service category.
  • Calculate the GST amount by multiplying the taxable value with the GST rate.
  • Add the GST amount to the taxable value to obtain the total invoice value.
  • Ensure compliance with any exemptions or special rates applicable.

Conclusion

The GST consent letter plays a vital role in the GST registration process, ensuring that a business operates legally from a specific location. The proper submission of this document, along with other necessary paperwork, facilitates smooth registration and compliance. Businesses must also provide proof of their primary location and follow the required steps to upload the consent letter. Using a GST calculator can simplify the process of determining the applicable GST. In conclusion, adhering to these guidelines not only ensures compliance but also aids in maintaining a transparent and efficient business operation.

Know more about Bajaj Finserv Business Loans

Here are some of the key advantages of our business loan that make it an ideal choice for setting up your marketing domain:

  • Simplified application process: Online applications streamline the process, reducing paperwork and saving time.
  • High loan amount: Businesses can borrow funds up to Rs. 80 lakh, depending on their needs and qualification.
  • Quick disbursal: Funds can be received in as little as 48 hours of approval, allowing businesses to respond promptly to opportunities and needs.

Frequently asked questions

How do I write a consent letter for GST?
To write a consent letter for GST, include the following details:

1. The property owner's full name and address.

2. The business's name and address.

3. A statement granting permission to use the premises for GST registration.

4. The nature of the agreement (rent, lease, etc.).

5. The duration of consent.

6. A declaration of no objection.

7. The property owner's signature, date, and contact information.

Use formal language and ensure clarity in the terms and conditions.

Does the GST consent letter need to be notarised?
No, the GST consent letter does not need to be notarised. The letter must be signed by the property owner or authorised representative, along with the necessary details like the business and property addresses. While notarization is not a mandatory requirement, ensuring the document's accuracy and legitimacy is crucial. Properly drafting and signing the letter, along with providing supporting documents, is usually sufficient for GST registration purposes in India.

Who needs to submit a GST consent letter?
A GST consent letter must be submitted by businesses operating from a rented or leased property or where the premises are owned by someone other than the business owner. This includes businesses using shared spaces, home offices, or any location not under their direct ownership. The letter, signed by the property owner or authorised representative, provides legal permission for the business to use the address for GST registration, ensuring compliance and transparency with tax authorities.

Is the trade name of the proprietor needed in the consent letter?
Yes, the trade name of the proprietor is typically required in the GST consent letter. Including the trade name helps clearly identify the business for which the premises are being used. This ensures there is no ambiguity regarding the entities involved, particularly when the legal name of the proprietor differs from the trade name. It aids in maintaining accurate records and facilitates smooth processing of the GST registration, ensuring that all details align correctly in official documentation.

Show More Show Less

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Related videos