Auditor Consent & Certificate

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GST Registration: Consent Letter

Every business can be classified in a certain tax slab. It starts primarily with such businesses that are exempted from paying taxes. These businesses usually have a small turnover. But when a business supplying goods and services to consumers reaches the threshold limit that the GST Act specifies, they are expected to register itself under GST.

By covering such businesses under a tax slab, the Authority can collect Goods and Services Tax from the consumers. The collected GST will then be deposited to the credit of the Government. The collected tax, availed as the input tax credit of the GST, can be paid by them while purchasing the essentials for its smooth business conduct.

Note: Customers can easily approach businesses that are legal suppliers of goods and services.

Consent Letter: How does it become necessary?

A consent letter is nothing but a NOC, i.e., a No Objection Certificate. As we all know, many businesses run their operations at a residence or rented accommodation venue. Such places are used for businesses without the official registration of it as a commercial place of business. The venue can be individual-owned or taken on a lease to run business operations. But such places can also be owned, rented, or taken on lease by the entrepreneur for making the supply of goods or services.

Owned Property

In the case of an owned property, the business owner requires a document that authenticates or supports its ownership over such property or premise. The owner must submit the document to the concerned authorities during its registration.

Rented or Leased Property

But if the property is taken on rent or lease, then the business owner must submit a copy of the lease or the rental agreement during the registration and for the same.

Non-applicable? therefore, the Consent Letter

But suppose the operation is not rented, owned, or taken on lease. In that case, the business owner must arrange a consent letter or a NOC obtained from the real owner of such premises where the business owner is running its operation.

Consent Letter Statement

The consent letter must state that the premise owner does not have any problem with the premise used by the applicant or taxpayer for his business. The consent letter or the auditor consent certificate in proper letter format must be presented to the Authority. 

Consent Letter Format

The GST Act does not provide any specific format for the issue of audit consent letters. The Act merely states the need for the letter, but the Act does state the importance of the consent letter.

Signing Consent Letter

For registering your business under the GST, the applicant must obtain the NOC or the auditor consent letter from the premises' original owner. The consent certificate's signatory must be the premise's original owner.

Consent Letter Stamping

GST does not mandate stamping the submitted consent letter, nor does the law have any relevant provisions. But if the GST officer(s) directs the business owner to submit the audit consent letter on stamp paper, then they must conform to their ruling. 

Attachments to the Consent Letter

Along with the consent letter format for the business place, the business owner must attach the following with the letter:

• Address proof of the business: It can be a copy of one of the following:
  1. Electricity Bill
  2. Water Bill
• Municipal Khata for the GST Authorities' perusal and providing the registration duly 

Process for Consent Letter Submission

The applicant must first visit the official online portal of GST, 'www.gst.gov.in'.

• Then the applicant must choose the option, 'Services' – 'Registration' – 'New Registration'.
• Afterwards, fill up the form and select the option Consent under the nature of possession of the premises.
• Finally, upload the consent certificate letter signed by the owner of the premises in JPEG or PDF file format with a size not more than 1 MB. The letter must be in proper GST consent letter format.

Submission Failure: What happens when Consent Letter fails to upload?

Suppose the business owner fails to upload the consent letter while making the registration application. In that case, the GST will intimate the same to the applicant via email or phone. The applicant then must upload the consent letter in the correct format. After proper submission, the GST authorities or officer will verify the letter and continue with the registration grant to the applicant.

You can check the proper consent letter format for GST registration in our attached file.