What is authority letter for GST?

Authorization Letter under GST

Authority letter for GST authorised the person to represent the entity or the person in GST related tasks. The document which depict that power is assigned to the person is known as Authorization letter. Person who get the authority is called authorised signatory. 

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Table Of Content

What is the authority letter for gst?

Authority letter for gst is the authorization letter for GST which authorised the another person or entity in matters concerned with compliance of the goods and services act and interaction with tax authorities to act on their behalf.

How many authorised signatory in GST Registration?

There are different authorised signatory  in the GST as mentioned below

• Hindu undivided family (HUF)

If karta of the family is not mentally capable to carry on the affairs or  karta is absent from the India, then with the help of the authority letter for GST any other person or other adult of the such family can authorisd to become karta.

• LLP or Partnership Firm

Authority letter for GST make any other person or any partners to act on the behalf of the partners.

• Individuals 

Authority letter for GST authorised any other person to act on the behalf of the individuals 

• Company 

Director or any other authorised signatory or managing director or chief executive officer get the authority by the board of directors to act on their behalf.

Letter of authorization format for GST 

There is no fixed format of the authority letter for GST. Even though their are certain aspects that need to be covered in the letter. The authority letter for GST should list the authorised persons and responsibilities that need to follow- 

• Firm or Company’s Registered name
• Place of business’s official address
• Contact detail of the firm or company like phone number, email address etc.
• Taxpayer’s Name 
• Authorised signatory’s name and address as well as their position in the company.
• Authorised signatory or taxpayer’s PAN detail and Aadhar Card
• Place, date and signatures

Important things to be remember while drafting authority letter for GST

There are Various important points that need to be considered while drafting authority letter for GST - 

• Authorisation letter for GST need to be made on the business’s letterhead.
• Principal place of business’ address proof like rent or agreement or purchase deed.
• Consent letter from the from the person who wants to accept role as authorised signatory.
• Board resolution need to be supported with the authority letter for GST.
• Authorised letter need to be signed by all the partners.
• There can be a maximum of 10 allowed signatures on the GST portal. But in these circumstances, one principal authorised signatory is chosen when numerous authorised signatories are added. 

Conclusion 

Authorised letter for GST is made to appoint the person who will signs all the documents. Format of the authorised letter for GST is not defined under the CGST Act. There are certain elements that need to be mentioned in the letter. To make good letter of authorisation for GST certain points has be keep in mind. By providing authority through authorised letter for GST helps defining the authority. And it also offers to delegatee the flexibility.