The Goods and Services Tax (GST) is a complete tax system that has made India’s system of indirect taxes easier to understand. Under the GST system, businesses must sign up for GST if certain conditions are met. The No Objection Certificate (NOC) is a very important paper that is often needed during the GST registration process. Today, in this blog post, we will talk about what you need to do and how to prepare the NOC to register for GST in India.
What does a No Objection Certificate (NOC) mean?
A No Objection Certificate, or NOC, is a piece of paper that says someone doesn’t have a problem with a certain action or transaction. It is given by one person to another. An NOC is usually given by the owner or landlord of the space where a business works in order to register for GST. This certificate shows that the owner of the property doesn’t mind the business using their property for GST-registered activities.
The actions that need to be taken to upload the signed NOC to the GST Portal are as follows:
- The first thing you need to do is visit the GST portal and then navigate to the “Services” area, followed by “Registration,” and finished off with “New Registration.”
- During the process of filling out the form, the second step is to pick “Consent” below the heading that describes the nature of possession of premises. In the event that the taxpayer takes advantage of the premises of a relative or if the place of business is rented, this is an essential requirement. The individual who is the owner of the property is the one who is required to sign the letter of approval.
- The third step is to upload the consent letter, which can be done in either the PDF or JPEG format; that being said, the file size cannot be greater than one megabyte.
When do I need a NOC to register for GST?
Usually, you need a NOC to register for GST in the following situations:
Rented or Leased Premises: If a business is running out of rented or leased premises, the landlord or property owner usually needs to sign a NOC saying they don’t mind the renter doing GST-registered activities on their property.
Shared Premises: If more than one business is using the same space, everyone may need to get a NOC to make sure there aren’t any problems or disagreements during the GST registration process.
Change of Address: If a registered business moves its location or address, the new property owner may need to send a NOC to validate the change of address for GST reasons.
Steps to Obtain a No Objection Certificate (NOC) for GST Registration
To ensure that your No Objection Certificate (NOC) for Goods and Services Tax (GST) registration is accepted and approved by the authorities, follow these steps:
- Language and Translation: The NOC should be written in a language that is easily understood by the intended audience, typically English or Hindi. If the NOC is in another language, provide a translated copy.
- Accurate Information: Ensure that the NOC contains accurate and up-to-date information about both the business and the property owner or landlord. This includes names, addresses, and contact details.
- Authorization: The NOC must be signed by the property owner or manager to demonstrate their agreement. If the document is not signed or is incorrectly signed, it may not be accepted.
- GSTIN Mention: If the business already has a GSTIN, it should be mentioned in the NOC to facilitate identification and processing.
- Statement of No Objection: The NOC should explicitly state that the property owner or manager has no objection to the business operating under GST on their property.
- Official Stamp or Seal: Including an official stamp or seal on the NOC adds formality and indicates the seriousness of the landlord or property owner.
- Witnesses (if applicable): If witnesses are required, clearly state their names and signatures on the NOC
Format of an NOC for GST Registration
While the Goods and Services Tax Network (GSTN) does not specify a particular format for a NOC, the following elements are generally considered essential:
- Date: The date when the NOC is issued.
- Recipient: Typically, the certificate should be addressed to the relevant officials at the GST department. The exact recipient may vary.
- Details of the Property Owner or Landlord:
- Full name as it appears on property records.
- Mailing address and phone number.
- Key Details About the Company:
- Full and formal name of the business.
- GSTIN (if available).
- Organizational details (name and address).
- Declaration: A clear and unambiguous statement that the owner or landlord has no objection to the business using their premises for GST-registered activities. For example: “I, [Landlord’s Name], have no objection to [Business Name] operating from my premises for GST-registered activities.”
- Signature: The NOC must be signed by the property owner or landlord.
- Stamp or Seal: It is advisable to include the stamp or seal of the property owner or landlord to add an extra layer of validity to the document.
- Witnesses (if applicable): If necessary, include the names and signatures of witnesses who can verify the legitimacy of the document.
How to Obtain an NOC for GST Registration
Obtaining an NOC for GST registration typically involves the following steps:
- Obtain the NOC: The first step is to obtain an NOC from the property owner or landlord.
- Draft the NOC: Work with the landlord or property owner to create the NOC, either according to their preferences or using a provided sample.
- Review and Sign: Review the drafted NOC to ensure it is accurate and comprehensive. Once satisfied, have the landlord or property owner sign the NOC.
- Submit the NOC: Send the signed NOC along with the GST registration paperwork to the appropriate authorities. Note that submission processes may vary by jurisdiction.
- Follow Up: After submission, check in with the relevant authorities to ensure that everything is proceeding smoothly with the GST registration.
Conclusion
An NOC for GST registration is a crucial document, especially for businesses operating from rented or leased premises. It serves as evidence that the property owner or landlord has no objections to the business conducting GST-registered activities on their property. When preparing the NOC, it’s essential to follow the prescribed format and ensure that all necessary information is included. By adhering to the requirements and guidelines provided by the GST authorities, businesses can streamline their GST registration process and avoid unnecessary delays or complications.
While the sample NOC format provided in this blog can serve as a template, businesses should always seek legal advice and consult with the GST authorities to ensure that their NOC complies with the latest regulations and specific regional requirements. Obtaining a valid NOC is an important step in ensuring a smooth and hassle-free GST registration process.
Frequently Asked Questions
What happens if a taxpayer forgets to submit the consent letter?
Suppose a taxpayer neglects to submit any crucial document or proof for GST registration. In that case, the GST officer will contact them, typically via email or phone, to resolve the issue.
Where should the consent letter be attached with address proof?
In cases where you already have a legal document or contract related to the ‘nature of possession of premises’ (whether owned, leased, or rented), the consent letter should be attached to the address proof only if you select the ‘consented’ or ‘shared’ option.
What are the size and format requirements for uploading documents on the GST portal?
The consent letter should be uploaded in JPEG or PDF format and must not exceed 100 KB (0.1 MB).
Where should the consent letter be attached?
There isn’t a dedicated section for attaching the consent letter. It should be included with the proof of ownership section in the GST registration form on the portal.
Is notarization required for the consent letter?
Notarization of the consent letter is not generally required, and most non-notarized consent letters are accepted. However, in rare cases, GST officials might request notarization for the document.
