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Letter of Authorization for GST

letter of authorization for gst

Letter of authorization for GST in terms of every business entity except for when the business entity is a sole proprietary or is run by a single individual. Since many people run the business, it is very difficult for the owner or the entrepreneur to conduct all the handlings of the business itself. That’s why there are employees who carry out the different aspects of the business. Some may be sales representatives, some may be handling the back office and orders and some may be the accountants who take care of the GST filings and reports. 

The employees who manage the GST proceedings and accounting often have to file for the GST forms themselves or go to the GST office physically. Since they do not own the business, the officers at the GST office need to know that they are indeed the ones in the charge of the accounting and are a representation of the business. To ensure and prove this, a letter of authorization is needed that is signed by the owner of the business, mentioning that the employee is in charge of the accounting and has the authority to carry out the business as mentioned. Without the letter of authorization, the employee will not be able to carry out the business proceedings, as this is a requirement by the GST offices. 

What is the Letter of Authorization and when is it needed? 

A letter of authorization is a document that shows the proof that the business employees are of a particular rank and thus they 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 authority to do so and is hence known as the Authorized Signatory. 

An Authorized Signatory is someone who has the right to sign on all legal documents regarding the business, they’re in charge of giving off authority to other employees of the business to take up other duties. 

Letter of authorization for GST registration is a must and is required for all types of business, except when a single individual runs the business. The letter of authorization for GST should be uploaded in a pdf format on the website while registering on the GST portal. 

Letter of Authorization for GST is given to a third person to perform certain activities in the realm of accounting and GST purposes. However, a letter of authorization isn’t only given for GST purposes and can be given to third parties to perform other business duties. However, today we’re covering the letter of authorization only from the point of view of GST. 

Thus, a letter of authorization is needed so that the officer in charge of approving the business transactions knows that the third party is the right candidate to conduct the business proceedings they have come for. 

A letter of authorization for GST registration is needed as during the time of registration all the details are filled and at that time the letter of authorization for GST pdf can be uploaded with ease. 

What are the different reasons when and why a letter of authorization can be used? 

As mentioned above, a letter of authorization is simply a legal binding document that gives the third party the responsibility for carrying out the business transactions on behalf of the business and the owner. There are many instances and different business aspects during which a letter of authorization can be used. The biggest one being, a letter of authorization for GST. However, some of the other places where a letter of authorization can be used are: 

  • Legal proceedings for court matters and court hearings are done by a lawyer 
  • Banking work and account opening procedures 
  • Permission to sign on behalf of the business owner 
  • To process any legal documents which are not of very great matter 
  • For any other business aspects such as signing off sales proceeds, etc. 

Letter of Authorization for Registration 

During the registration process, one needs to ensure they upload the letter of authorization for GST pdf on the website itself. This is a step that is required while registering. The person mentioned in the letter of authorization should be a third party and not the applicant itself. 

For example: If Ms Pushpa is the business owner and she is registering her business on the GST portal and an authorization letter. Ms Pushpa is the authorized signatory and her accountant is in charge of ensuring all the GST filings are done on time, Mr Kiran is the third party that is mentioned in the letter of authorization. 

In case, Ms Pushpa is conducting the business entirely herself and does not have anyone else to give off the authority to, they themselves become the authorized signatory and do not need to fill in any other details. 

Also ensure, once the letter of authorization is drawn up, there is also a letter of acceptance or the statement of acceptance mentioned on the letter. Letter of acceptance is a document that mentions the third party authorised signatory accepting the duties that are given to him. 

Details mentioned in the Letter of Authorization for GST and a sample PDF format 

There is no set rule in which a letter of authorization needs to be mentioned. However, some common details need to be covered to ensure the point of the letter of authorization is conveyed. There are many platforms from where a user can download a letter of authorization and just change the details for their business. 

Some of the details that need to be conveyed in a letter of authorisation GST pdf are: 

  • Name of the business 
  • Name of the applicant or business owner 
  • Address proof 
  • Statement mentioning the name of the third party being the authorised personnel 
  • Statement mentioning the extent of the duties and responsibilities the authorised personnel is legal to do 
  • Acceptance statement from the third party agreeing to the business owner for being the authorised personnel for the said responsibilities 
  • Designation of the third party 
  • Place, date and digital signature of all the parties involved 

Letter of Authorization for GST PDF format

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