Letter of Authorisation for GST: Format, Sample, and Requirements

• A letter of authorisation for GST authorises a person to discharge GST-related duties.
• The authorised signatory letter should cover all relevant details, including business name, address and contact details, etc.
• Examples of GST-related responsibilities are filing out the applicable forms, making payments, etc.

A letter of authorisation grants authority to run a business on behalf of the company. On similar grounds, there exists a letter of authorisation for GST . This authority is usually given to the company’s employees to execute GST-related activities smoothly.In this blog, you will explore the different aspects of this authorised signatory letter and its significance in executing various business responsibilities.

Each company usually has an authorised signatory to conduct GST-related activities. From filling forms to making payments, there are various duties that you must be aware of. An authorised signatory's meaning suggests a person who is in charge of such activities.A letter of authorisation for GST authorises an individual to discharge GST-related duties and also informs the GST authorities that this person is officially designated to discharge duties.

As explained earlier, a GST authorisation letter enables the designated person to execute the day-to-day GST-related functions. Here are a few examples of these functions:

• GST registration.
• Document signing, like GST returns, forms, etc.
• GST department correspondence.

Important Points for Drafting A Letter of Authorisation for GST

The GST authorisation letter should be issued on the company’s letterhead and cover all related details. Some key details include:

• Business name.
• Address and contact details.
• Name of the authorised signatory.
• Place, date, and signatures.

Letter of Authorisation for GST Registration
You are normally required to submit the authorisation letter for GST during GST registration. Let’s take a look at who can act as the authorised signatory for different types of entities. Sole Proprietorship In the case of a sole proprietorship, the proprietor can act as the authorised signatory for executing GST-related activities. However, the proprietor can also authorise an employee/any other person for GST compliance. Corporate Entity Talking about a corporate entity, any director can normally serve as the authorised signatory, subject to compliance with applicable conditions. You must note that a board resolution is typically required to accompany the authorisation letter. Partnership Firm Any partner of a partnership firm can usually discharge GST-related roles and responsibilities. It is advisable for all partners to sign the authorisation letter for GST in this case. Letter of Authorisation for GST Format Here is a sample of the authorised signatory letter. You may seek expert guidance for your specific needs. Make sure to issue the letter on the entity’s letterhead.

* Note: The above letter of authority for GST is only for reference purposes. Speak to an expert to draft a letter aligning with your needs and covering the scope of authorisation.

Now that we know the format of a letter of authorisation for GST, let's explore the steps involved for submitting this letter. Here are the standard steps that must be followed:

• Step 1: Draft the letter of authority for GST and keep it ready.
• Step 2: Go to the GST portal and upload the letter.
• Step 3: Next, submit the required details and documents as asked for.
• Step 4: It is a good practice to keep a copy for your records.

The authorisation letter assigns GST-related responsibilities to a designated person. This frees up your time from operational activities, and you can concentrate on expanding your business. Speaking about business expansion, exploring a business loan can help you arrange for the required capital.Talk to a designated Aditya Birla Capital representative for personalised business loan solutions, aligning with your business needs. Also Read: 10 Types of Business Loans in India