Letter of Authorization of GST Proprietorship

A simple letter of authorization is written by a person who wants to allow someone else to act on his behalf. In the business world, this letter has a lot of significance. People are required to be very careful when they write this letter. One of the most common types of letters of permission is the letter written to permit GST proprietorship.

What is a letter of authorization of GST proprietorship?

This is a letter of authority in which the owner of the business gives the authority to someone to conduct all the business transactions under the law of GST. There are many situations in which this letter may be needed. People usually write the permission letter when there is only one person who has the authority that person wants someone else also to hold this authority.

Why there is a need to write this letter?

The authorizer feels the need to write this letter when:

  1. There is a need to register the business under the law of GST and the owner of the business is either not available or does not know the right procedure to follow. 
  2. When there is a need to cancel the registration of the business under the law of GST.
  3. When the company needs someone who can regularly communicate and correspond with the GST department, it allows someone to perform this operation. If there is any query received by the business from the tax department, the person with the said authority will communicate.
  4. People who have the authority are often asked to prove it. In that situation, they have to show this letter as a proof.

What are the steps to write this letter of authority?

The steps given below will give you a complete guide that you can follow

Find the appropriate person:

It is important to remember that not every individual can be chosen to be the representative of a business to act as a GST proprietor. Choose the person who is responsible and also has enough knowledge about the procedures to follow.

Know the legal requirements:

You should know whether you are allowed to give this authority to someone or not. If yes, what would be the procedure and what documents are required to get this job done.

Make sure that you define the type of authority:

Some people don’t know how crucial it is for them to specify the level the authority they are giving to someone. This way, they put their business at a risk. So, it is mandatory to mention what the subject of the letter shall be able to do after he/she has been given the authority.

Write specifics accurately:

Since this letter can also be used for legal purposes, make sure that specifics needed to be written in this letter are clearly defined and there is no such detail that is missing. For instance, if you are choosing someone to act on the behalf of your company, it is important to mention the complete and accurate name of the company.

Give your introduction:

There are only a few people who can be allowed to write this letter. The reader will want to know who is trying to transfer the authority. Therefore, give your introduction and ensure that you are the one who can write this letter.

Mention when this letter will be operational:

Sometimes, the consent is only for a few conditions. In this situation, it is important to mention that condition. Also, write it clearly that the consent will not be applicable if the condition specified in the letter is not fulfilled.

Below is a sample letter of permission.

Sample letter:

Dear Recipient,

This is to inform you that I (mention your name), the owner of the property authorizes Mr. ABC for operating the business of (mention the type) in the area of (mention the address. Furthermore, I would like to state here that I have no objection to authoring MR. ABC uses the address of my property as a mailing address. He is allowed to obtain the registration of the company under GST.

Owner of the company.

Signatures

_________________

Letter of authorization of GST proprietorship

File: Word (.docx)
Size 22 KB

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