GST registration is a simple online process. However, it get’s rejected, the most common reason of rejection/objection is defect in proof of principal place of business.
This article analyses and explains the admissible proof of place of business for GST registration.
As per GST REG-01 PART B of CGST Rules, 2017 read with Rule 8 of PART A of CGST Rules, 2017 following shall be admissible as proof of principal place of business:
(a) For Own premises –
Any document in support of the ownership of the premises like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(b) For Rented or Leased premises –
A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(c) For premises not covered in (a) and (b) above –
A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents may be uploaded.
(d) For rented/leased premises where the Rent/lease agreement is not available
An affidavit to that effect along with any document in support of the possession of the premises like copy of Electricity Bill.
A common question in this regard is whether the affidavit shall be mandatory drawn on stamp paper or it is admissible on plain paper also?
An affidavit is a written statement which is sworn to be true (an oath). It is signed by the affiant (the person making the oath) and also a notary public or other judicial officer that administered the oath.
For the ease of understanding Affidavits are divided into two types:
1. Affidavit to be presented before courts: Such Affidavits shall be sworn by judicial officer and no stamp paper is payable thereof.
2. Affidavits to be presented before government departments: Such Affidavits shall be drawn on stamp paper and sworn by notary public.
Thus, it can be well said that in case of rented/leased premises where rent agreement is not available, an affidavit (consent) on stamp paper duly notarized shall be submitted.
Further, I would like to mention that consent on plain paper or on stamp paper is presently a matter of grey area, some jurisdictions also accept consent on plain paper while others demand it on stamp paper duly notarized, however considering the safer side it should at the first instance be drawn on stamp paper duly notarized to avoid objections and rejections.
(e) If the principal place of business is located in a Special Economic Zone or the applicant is an Special Economic Zone developer
Necessary documents/certificates issued by Government of India are required to be uploaded.
The author may be reached at firstname.lastname@example.org or at 9675899911.