Consent Letter in GST with its Registration Criteria 

SITUATION:-

  • Under GST Law, if any person is doing business in some other premises without paying any rent then at the time obtaining the registration under GST, he has to give a NOC from the owner of the property such NOC is called consent letter or allotment letter.

However there is no specific format has been prescribed for such consent letter so accordingly, it can be any WRITTEN DOCUMENT but such consent letter must be supported by the Address Proof the owner. It may be electricity bill copy or aadhar card copy etc.

Consent letter in gst

  • In India, it is generally seen that most of the people start their business at home or any other place which is owned by the parents of the applicant. In this case, he has to obtain the consent letter from them.

Thus In Simple Words, The consent letter is compulsory Required, if the following conditions are satisfied namely:

  • The person who is liable to get registered under the GST Act and
  • The person who is making a supply from any other person owned place without any consideration.

Let’s take a Quick View on GST Registration 

A person who is liable to register under the GST Act

There are 2 sections in the CGST Act, which specify the terms under which an applicant is liable for the registration under the act. The supplier is required to register himself under GST in the states in which he is making taxable supplies of goods and services if his aggregate turnover in a financial year exceeds Rs. 20,00,00 and 10,00,000.

As per the recent amendment in the GST Act, the limit of 10,00,000 is applicable for 4 states which are Manipur, Mizoram, Nagaland, and Tripura.

As per the notification No. 10/2019, any person, who is engaged in the exclusive supply of goods and whose aggregate turnover in the financial year does not exceed 40,00,000

However, this limit shall not be applicable to the following:

  • If such person is compulsorily required to get registered as per section 24 of CGST Act, 2017.
  • If the person is engaged in the supply of Pan masala, Ice cream, Tabacco.
  • If the person is making an intrastate supply in the state of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand.

Procedure to determine whether the person is liable for the registration or not

  • Find out the aggregate turnover
  • Check the applicable limit for the person (I.e. Rs.10,00,000 for 4 specified states and 2000000 for other states)
  • If the aggregate turnover exceeds Rs.20,00,000/10,00,000 then the person is required to have registration in which he is making taxable supplies.

Note: While calculating Aggregate Turnover, all supplies shall be included i.e. Taxable supplies, Exempted supplies, Non-Taxable supplies, and zero-rated supplies but REVERSE CHARGE SUPPLIES, GST ALL TAXES (CGST, SGST, UTGST, CESS) these must not b consider while calculating Aggregate Turnover

Compulsory Registration Under GST

However, there are certain supplies under which the applicant is compulsory required to get his registration as defined under section 24 of the CGST Act, 2017.

Following are the supplies under which the applicant shall have to compulsory register himself irrespective of his turnover in the financial year:

  • A person is making interstate taxable supply of services and specified goods.
  • The casual taxable person making a taxable supply. 
  • Non Resident taxable person making a taxable supply

Note: casual taxable person and a non-resident taxable person has to obtain the registration in advance by at least 5 days before commencement of business.

  • A person who is required to pay tax under the Reverse Charge Mechanism.
  • E-commerce Operator
  • A person is liable to deduct the TDS under section 51.
  • Person liable to collect the TCS under section 52.
  • Input service distributor, whether or not separately registered or not.

There are certain suppliers who do not require to register themselves even if their turnover exceeds the above-prescribed limit. Which are:

  • The person who is engaged only in supplying the goods or series which falls under RCM.
  • The person making interstate supplies of taxable services up to Rs. 20,0,000.
  • The person making interstate supplies of taxable notified goods up to Rs. 20,00,000.
  • Job worker making interstate supply of service to the registered person.

Concent letter GST

Now What, if Cross GST Limit as above discussed

If the person crosses limits as specified under section 22 or if he is compulsorily required to get himself register under GST then he has to apply for the registration within 30 days from the date in which he is liable to get registration. Then jump on this  GST site: https://www.gst.gov.in/  to make oneself register under GST LAW.

As the above-discussed Issue about CONSENT LETTER IN GST, A Glimpse of Simple Format of CONSENT LETTER can be used:

NO OBJECTION CERTIFICATE

(NOC)

TO WHOMSOEVER IT MAY CONCERN

This is to certify that I ……………………..(Name of the applicant), being the owner of the property ………………………………………………….(Principle address of the owner) has permitted and allowed ————————————– (Name of the applicant) for operating and conducting their business from ADDRESS MENTIONED ABOVE.

I further state that I have no objection if …………………………. (Name of the Owner) uses the address of the said premises as their mailing address.

Owner of the property

Signature

……………………………. (Name of the owner) MOHD BASHIR JALIB

If the applicant is a company then with consent letter, it also has to submit a board resolution copy in which they will authorize to use such property and the person who shall be authorized to sign on all the documents related to that matter.

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