Letter of Authorization for GST Registration for Private Limited Company

From a tax and compliance perspective, a crucial element for businesses having a GST Registration is a formal Letter of Authorization (LoA).Let’s understand all about Letter of Authorization for GST Registration through this article.

What is a Letter of Authorization?

A Letter of Authorization for GST signifies that any firm or company seeking registration under GST in India must designate an individual to fulfill several key responsibilities:

Signing all documents and applications related to GST on behalf of the firm/company.
Filing all GST returns.
Signing all correspondence with the GST department.

This authorized person acts as the official representative of the firm/company in all matters pertaining to GST compliance and communication with the GST authorities.

Why does a Private Limited Company need a Letter of Authorization?

Private Limited Companies need GST LoA to handle and assign everyday GST tasks. However, even sole proprietorships can give a Letter of Authorization to its employee to handle routine GST work of the firm.

GST Registration: Authorised Signatories hold the authority to initiate, amend, or cancel the firm/company’s GST registration under the GST Act.
GST Compliance: Authorised signatories have responsibility of signing crucial documents under GST Regime, do GST Return Filing, generate invoices, and various GST forms. These documents may be uploaded to the GST portal or submitted physically to the GST department.
Communication with GST Authorities: Authorised Signatories can represent the firm/company in official communications with the GST department. This includes responding to notices, queries, and clarifications, as well as engaging in any other necessary correspondence.

Essential Tips for Letter of Authorization for GST Registration

Ensure accurate details of the Authorised Signatory, including name, address, and contact information, are provided during GST registration using Form Reg-1.
Upload the GST Authorization Letter along with a copy of the Board Resolution on the GST Portal.
The Board Resolution should formally authorise the designated individual to act as the Authorised Signatory for GST purposes.
Both the Board Resolution and the Authorization Letter must be uploaded to the GST Portal to complete the registration process.
Verify that any Director or designated Partner acting as the Authorised Signatory meets all regulatory criteria and is duly authorised.

Contents of Authorization Letter for GST Registration

Name of the Business Organisation
Address of the Business Organisation (with Address proof)
Telephone No. of the Business Organisation
E-mail ID of the Business Organisation (usually available on the firm/company letterhead)
Name of the Applicant (Owner, Partners, Directors, etc.)
Name of the person receiving the authority
Designation of the person in the firm/company receiving the authority
Address of the Authorized Signatory (PAN Card & Aadhaar Card for address and identity proof)
Statement of Acceptance by the Authorized Signatory to act on behalf of the firm/company
Date, Place, and Signature of both parties (Owner & Authorized Signatory)

Do I need to appoint an Authorized Signatory?

Yes, for most businesses. When you register your company or firm for GST (Goods and Services Tax), you’ll need to provide details about your Authorized Signatory on a form (Reg-1). This includes their name, address, job title, and other relevant information. The exception is sole proprietorships – the owner can act as their own Authorized Signatory in those cases.

What does an Authorized Signatory do?

An Authorized Signatory puts their name on official documents for your business. This includes invoices, GST returns, any forms or applications you submit to the GST department, and even changes to your GST registration. They also handle communications with the GST department, responding to notices, inquiries, and the like.