Letter of Authorization for GST

Table of Contents

A letter of authorization is a document that proves that the business employees are of a certain rank and can be in charge of carrying out the legal proceedings of the business on behalf of the business owner. This letter is signed by the owner of the business who has the power to do so and is thus known as the authorized signatory.
                                                

Need for GST letter of authorization

A letter of authorization for GST is required for day-to-day GST work in a firm for every business entity, excluding sole proprietorships or businesses run by a single person. Even a sole proprietorship firm can give its employee a letter of authorization to handle the firm’s routine GST work. In general, a letter of authorization is required under GST for the following purposes:

  • For registration under the GST act,
  • For any modifications or cancellations to a registration under the GST Act,
  • For signing documents such as GST returns, invoices, and so on that must be uploaded to the GST website or physically submitted to the GST department,
  • For filing a reply to any notice or query from the GST department,
  • For any other correspondence with the GST department on the firm’s behalf

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Letter of Authorization for GST

Letter of authorization for GST registration

  • When applying for the registration of GST, it is mandatory to provide the same address and other information of the person acting as the authorized signatory while registering the GST of the firm.
  • The letter of authorization must be uploaded in pdf format along with the registration application form on the GST portal.
  • In the case of sole proprietorship, an additional authorized signatory is not required. The proprietor himself can serve as an authorized signatory.
  • The GST authorization letter shall be accompanied by a copy of the Board of Resolution in the event of a firm such as a public company, private company, one-person company, etc.
  • A copy of the Board Resolution and the Authority Letter must also be uploaded to the GST portal.
  • The Letter of Authorization must be signed by all of the firm’s partners in the case of a partnership firm.
  • It is important to mention that any director of the company as well as any partner of the firm can function as an authorized signature.

 

Contents of Authorization letter for GST

There are several Letter of Authorization formats available for various uses on various platforms. In general, business owners must fill out certain basic details in the Letter of Authorization, such as:

  • Name and address of the business organization
  • Telephone number of the business organization
  • E-mail ID of the business organization 
  • Name of the applicant
  • Name of the individual to whom authority is being given
  • Designation of the person in the firm to whom authority is being given.
  • A statement of acceptance by such an individual to act as an Authorized Signatory of the company.
  • Date, place and signature of both parties( the owner and the Authorized Signatory)

 

Authorized Signatory vs Authorized Representative under GST

Authorized Signatory

  • An authorized signatory is the person who is given the responsibility by the company owner to carry out the routine business transactions of the business entity.
  • On a daily basis, they comply with different norms and regulations of GST legislation such as GST registration, signing of invoices and other documents, filing of GST returns, filing of a claim for GST refund, and other forms on the GST portal physically with the GST department.
  • They also reply on behalf of the firm to routine notices or queries, etc., of the GST department or any other correspondence with the GST authorities.
  • Such a person is often an employee of the firm or any other third party who is constantly involved with the organization. The actions of an authorized signatory are binding on the corporate entity.

 

Authorized Representative

  • An authorized representative is a person appointed or authorized by the company/business owner to represent the company/business entity before the GST authorities to respond to any notices, summons, etc..
  • They also manage assessments, appeals, revisions of any order, and other similar types of work under the GST statute.
  • Such a person is generally an advocate or a chartered accountant/company secretary in practice, or any employee of the business entity, or any retired officer of the GST Department in practice as permitted by GST law.
  • Typically, such individuals are appointed through a power of authority. If any such person is appointed as the authorized representative of a company, a Board Resolution is also required in addition to Power of Attorney.
  • All the representatives made by the Authorized Representative before the GST authorities are binding on the company appointing such people.

 

Conclusion

A letter of authorization is required for GST registration and for all sorts of businesses. When registering on the GST portal, the letter of authorization for GST should be uploaded in pdf format on the website. It is assigned to a third party not only for accounting and GST purposes, but also for other business functions. An authorized signatory is someone who has the authority to sign all business legal documents. They are in charge of delegating authority to other employees of the company to take on additional responsibilities.

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