Letter of Authorization for GST Sole Proprietorship

It is important to follow all rules and regulations concerning taxes in any country that you are in. If you do not do this, there will be consequences. The goods and services tax or GST tends to be a value-added tax that is levied on most goods along with services that are sold for domestic consumption. The sole proprietorship needs to register for GST when the business turnover exceeds a certain amount.

What is a letter of authorization for GST sole proprietorship?

It is tough for the owner of a business to carry out all functions. This is why they have employees to do this. Those who handle the GST proceedings, as well as accountings, usually need to file for GST forms by themselves. They do not own the business and so the officers at a GST office have to know if they are the ones handling the accounting. This is when a letter of authorization is required which is signed by the owner of a business.

It mentions that a certain employee is handling accounting. If this letter is not present, the employee is not able to carry out business proceedings.

Therefore, this letter is the document that gives proof that different business employees are of a certain rank and so can handle the legal proceedings of a business. This is carried out on behalf of the concerned business owner.

Importance of the letter

This letter helps GST offices know who is in charge of handling business transactions. They have proof that the individual who has come to conduct business proceedings is the one actually in charge of this. The letter can be used in court matters if needed.

This letter can be used for banking work or account opening procedures. Legal documents that are not of really great matter can use this letter to get processed. Different business aspects like signing off sales proceeds can take advantage of this document.

Tips to write a letter of authorization for GST sole proprietorship:

The letter of authorization for GST sole proprietorship is a formal letter that needs to be written professionally. The following tips can be kept in mind here:

  • Microsoft Word: The letter must be typed in an application like Microsoft Word. Make sure that there are no spelling and grammar mistakes.
  • Details to include: It is important to include the name of the business, the name of the particular applicant, and the business owner. Give some address proof.
  • Statements to add: A statement stating the name of the particular third party that is the authorized personnel should be given. You need to give a statement that tells the extent of duties as well as responsibilities that the authorized personnel can legally carry out. There will be an acceptance statement coming from the third party that they agree to what the business owner has claimed and are willing to carry out the responsibilities.
  • Other points to include: You need to give the designation of the third party. State the place, date along signature of the parties concerned.

Final Words:

From the above, you can tell that the letter of authorization for GST sole proprietorship is indeed important. It has to be written carefully with no errors as it can be used in court hearings if necessary.

Sample letter

Declaration for Authorized Signatory

I (Name of the Proprietor) in this letter affirm and state that (name of authorized signatory) will act as an authorized signatory for (Name of Business). The GST Registration Number for the business is (Number). This is for which application for registration is getting filed under the particular Goods and Services Tax.

The actions of (Name of Person) concerning this business will be binding on us.

Give signature of the proprietor
State the name
Give the designation

The acceptance to behave as an authorized signatory

1 (state name of authorized signatory) give my acceptance to behave like an authorized signatory for the business referred to above. My actions will be binding on the business.

Give signature of authorized signatory
State designation or status


Letter of Authorization for GST Sole Proprietorship

File: Word (.docx) 2007+ and iPad
Size 21 KB