Letter of authorisation for GST: Format, sample and how to write

What is a letter of authorisation for GST?

Every registered taxpayer is required to appoint and declare an authorised signatory in accordance with the GST registration provisions and GST Rules governing registration and authentication. The letter of authorisation for GST or LOA is what gives that designation legal standing.

The authorised signatory is the person who signs returns, files amendments, responds to notices, and deals with GST authorities on the business's behalf. The authority letter for GST is what authorises all of that. Every action they take under it is binding on the business.

How to write a letter of authorisation for GST?

The letter has no prescribed format but the portal has specific expectations. Drafting a letter of authorisation for GST registration takes ten steps:

1. Use the entity's official letterhead wherever available, as it helps establish authenticity and facilitates verification.

2. Address the letter to the relevant GST officer or keep it as a standing authorisation.

3. Address the letter to the relevant GST officer or keep it as a standing authorisation.

4. Name the authorised person with their designation, PAN, and Aadhaar number.

5. Spell out the specific GST activities you are authorising them to perform.

6. Include a line confirming that their actions in this capacity bind the business.

7. Add the date, place, and your signature as the authorising party.

8. For private limited companies, reference the board resolution number and date. The portal treats the letter and resolution as a pair. A letter without the resolution reference stalls at verification.

9. Affix the company seal if your entity type requires it.

10. Upload the signed letter under the Authorised Signatory section on the GST portal during registration or amendment.

Frequently Asked Questions

1. Is a letter of authorisation mandatory for GST registration?

Yes. The only exception is a sole proprietor, who is the authorised signatory by default. For entities other than sole proprietorships, appropriate proof of appointment or authorisation of the authorised signatory is generally required.

2. Who can sign the authorisation letter for GST?

For a sole proprietorship, the proprietor signs. For a partnership firm, any partner can sign. For a private limited company, the letter must be backed by a board resolution and signed by a director authorised by the board. For an LLP, any designated partner can sign.

3. What is the validity of a GST authorisation letter?

There is no fixed validity. The GST letter of authorisation stays in force until the business revokes it or changes the signatory on the portal. Stating a duration in the letter, even "until further notice", is worth doing.

4. What is the difference between a GST authorisation letter and a Power of Attorney?

A GST authorisation letter format is limited to GST matters only. A Power of Attorney is a much broader legal document that extends well beyond tax compliance. For GST purposes, the authority letter for GST is enough. For most GST compliance purposes, an authorisation letter is generally sufficient. However, a Power of Attorney may be used where broader legal authority is required.

5. Can I use the same authorisation letter for multiple GST registrations?

No. Each GSTIN is treated as a separate entity on the portal. Since each GSTIN is treated as a separate registration, businesses should ensure that the authorisation clearly covers each GSTIN for which the authorised signatory is acting.