Download Rent Agreement for GST registration in Word & PDF format
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Rent Agreement for GST Registration in Word & PDF format
A rent Agreement for GST registration is required at the time of filling the GST Application when the principal place of business is selected as “Rented”. Before we directly jump upon the formats we need to understand a few things to avoid any show-cause notice.
What are the questions that come to our mind while we prepare the Rent Agreement for GST registration? Let us discuss each one by one.
What should be the stamp duty on rent agreement for GST registration?
The first question that comes to our mind while we making a rent agreement is whether a rent agreement should be stamped?
Yes, it should be stamped.
The immediate question that comes to our mind is then what should be the value of stamp duty?
Stamp duty value is always state-specific. Most states accept rent agreements with a stamp value of Rs. 100. However, in some states, GST officials issues show-cause notice for not having a rent agreement of respective stamp duty value.
Look at this real-life case. We attached a Rent Agreement with a stamp duty value of Rs. 100. However, we received a show-cause notice for not making the correct amount of stamp duty.
Afterward, we took corrective action and GST registration was granted by the officer.
Whether only rent agreement would work for GST Registration?
When we select the principal place of business as “Rented”. We have to attach a Rent Agreement or Rent Slip to show the GST official that the premises are rented.
However, the rent agreement describes the relationship between the Landlord (Lessor) and the lessee. But it does not verify the ownership of the property.
Look at the show cause notice received by one of the people. In this case, the person attached the rent agreement but forgot to attach any ownership document.
To avoid any kind of show cause notice, one should always attach the latest electricity bill, property tax receipt, and municipal khata copy along with rent agreement or rent slip.
Curb On fake Rent Agreement for GST registration
When the proof of ownership will be attached, it will mitigate any type of GST registration obtained on the basis of any fake rent rent agreement or rent slip or any other document.
GST department is now to undertaking necessary steps to curb any fake GST registrations.
Rent Agreement Size for GST Registration
Always keep in mind the sie of rent agreement for GST Registration. It should not exceed 200kb and should be attached in PDF format.
Format of Rent Agreement in PDF & Word Format
What constitutes the rent agreement? What should be the essential points?
There are not any kind of major changes in the rent agreement for GST Registration. However, we can add the following point to make it more compliant for GST Registration.
“THAT THE LESSOR HAS ALLOWED THE LESSEE TO USE PREMISES FOR OBTAINING GOODS AND SERVICE TAX REGISTRATION AND TO SHOW IT AS PRINCIPAL PLACE OF BUSINESS”
The format of the rent agreement should have the following elements.
- Should start with Lessor Details and Lessee Details.
- The next point should state the purpose of the Rent Agreement.
Moving on to the clauses which should be mentioned in the rent agreement.
- The first point should be Lease Term. Mostly it is for 11 months.
- The notice period for termination of lease and compensation to be paid for premature termination of the contract.
- Use of premises for residential purpose or commercial purposes. If we doing it for GST registration, we should specify “Commercial Purpose” as well as”
- Responsibility of tenant while returning the property in the same condition as obtained.
- Responsibility of the tenant to handle any minor repairs or alterations. Alterations are to be done with permissions only.
- Security Deposit to be made and conditions attached along with it while refunding.
- Any sharing of electricity, water bills or property taxes, or any fines.
- Any advance deposit or prepaid rent to be made.
Frequently Asked Questions
Stamp duty value is state-specific in India. While buying stamp paper, one should directly ask what should be the stamp value. As we have discussed above, incorrect payment of duty will lead to show cause notice.
Proof of Ownership like Electricity Bill, Property Tax, Municipal Khata Copy should be attached along with rent agreement or Rent slip.
in the case of “Rented or Leased” premises, one should attach “Rent or Lease Agreement”. Consent letter or NOC works when we selected premises as “Consented”.
Akash Arora is a Chartered Accountant by profession. He has over 6+ years of experience w.r.t Goods and Service Tax (GST) compliances, litigations and managing routine GST issues.
Connect with him at +918588918033 and [email protected]
Thanks for sharing the information. The rent agreement has to be registered or notarised? My landlord lives outside of India and cannot come to register the rent agreement. Can I just submit signed stamp paper agreement.
You can try if GST officer accepts the same, Otherwise Notarized is mostly preferred.