A co-owner’s consent letter is not obligatory to get Goods and Services Tax (GST) registration if ownership of the property is specified via an electricity bill issued in the GST registration petitioner’s name, Allahabad High Court held.
It was said by the court that under the GST act an electricity bill in the name of the registered owner is enough as evidence of ownership removing the requirement for a consent letter from other co-owners.
Justice Pankaj Bhatia agrees with the view of the appellate authority citing that clause (a) governs the case of property owners, and the rules do not obligate additional consent from co-owners if ownership is established previously.
Satya Dev Singh the applicant asked for the GST registration cancellation allotted to respondent no 5 who is the wife of the co-owner of the property.
The fact is that the applicant and the husband of respondent No. 5 are the co-owners of the questioned property. It was claimed that the registration was furnished without getting their consent.
It was claimed by the applicant that the respondent was unable to get their consent before getting the registration. The GST authorities denied the application of the applicant quoting the compliance with the need under Form REG-01, which cited the acceptable documents for the evidence of the principal place of business. The same comprises the property tax receipts, municipal records, or an electricity bill for owned premises.
It was cited by the appellate authority that the electricity bill was in the name of the respondent. It has completed the ownership proof needed under clause (a) of Form REG-01.
“Proof of Principal Place of Business :
- For Own premises – Any document in support of the ownership of the premises like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- For Rented or Leased premises – A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- For premises not covered in (a) and (b) above – A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents may be uploaded.”
The petitioner’s claim that clause (c), demanding a consent letter for shared properties, applied in this matter was rejected by the court.
The bench mentioned that “The said contention of the counsel for the petitioner deserves to be rejected for the sole reason that the issue would be governed by clause (a), which prescribes that a document in support of the ownership of the premises is required in case of the owner, there is no mention of the resident being sole owner.”
It was said by the court that clause (c) is related to the case in which the ownership is not founded through documents such as the electricity bill. As the respondent has furnished enough evidence of ownership, the letter of consent was considered unwarranted.
Read Also: What If Electricity Comes Under GST India?
The writ petition has been dismissed by the court and affirmed the decision of the GST authorities, carrying that the objection of the applicant does not have merit and that no breach of the GST registration rules was there.
| Case Title | Satya Dev Singh vs. Union Of India Thru. Secy. Ministry Of Finance |
| Citation | WRIT TAX No. – 261 of 2024 |
| Date | 17.12.2024 |
| Counsel for Petitioner: | Prabhakar Trivedi, Anand Dubey, Anand Prakash |
| Counsel for Respondent: | A.S.G.I., Arun Kumar Gupta, Dipak Seth |
| Allahabad High Court | Read Order |
