When a business uses rented premises as its place of business, the GST officer wants to see a registered agreement that actually covers the premises, together with proof that the landlord owns it and has no objection to its commercial use. A stamp-paper agreement signed by both sides is the starting point, but a notarised agreement alone is often refused. This page lists what the department looks for, the clauses a GST-facing agreement should carry, and the usual reasons an application is rejected.
Who this applies to
This applies to proprietors, partnerships, LLPs and companies registering for GST in West Bengal whose principal or additional place of business is a rented premises. It also applies to businesses that already hold registration and are adding a new place of business. The principles are the same for the physical verification that the officer may carry out.
What the GST officer looks for
The officer is verifying two things: that the business really operates from the address, and that it has a lawful right to occupy it. The documents that answer this are:
- A rent or lease agreement for the premises, properly stamped, signed by the landlord and the tenant, and where the term so requires, registered.
- Proof of the landlord's ownership — a registered sale deed, property tax receipt, or municipal record showing the landlord's name.
- The landlord's no-objection certificate permitting use of the premises for the business and for GST registration at that address.
- The latest property tax paid receipt for the premises.
- A recent electricity bill for the premises in the landlord's or the business's name.
Where the premises is jointly owned or the landlord is a company or trust, the ownership proof and the authorising document should match the person signing the agreement.
Clauses a GST-facing agreement should carry
- The full names and addresses of the landlord and the tenant, and the tenant's business name.
- A clear description and address of the premises, matching the address used in the registration application.
- The purpose — that the premises is taken for carrying on the specific business and for its place of business.
- The term of the tenancy and the licence to use the premises for business, including GST registration.
- The rent, the payment cycle, and the security deposit.
- A clause permitting the tenant to display its name board and to receive GST and other official correspondence at the premises.
- A statement that the landlord has no objection to the tenant's registration at this address.
Keep the agreement, the ownership proof and the utility bill consistent in name and address. The officer compares the three, and any mismatch in the spelling of the address or the identity of the landlord is read as a weak link in the chain of documents.
The term and registration question
Whether the agreement must be registered depends on the term. Under the Registration Act 1908, a lease of immovable property for a term exceeding one year requires registration; a short fixed-term tenancy may not. A GST-facing agreement is therefore often drafted for a term that keeps the drafting straightforward, while still giving the business a secure occupancy. Where registration is required, an unregistered agreement does not by itself vest the right it purports to create for the term, and the department may treat it as insufficient.
Why a notarised agreement alone may be refused
Notarisation only verifies that signatures were made before a notary; it does not register the instrument and does not prove ownership. An agreement that is merely notarised, without a stamped original, without the landlord's ownership proof, or without any document connecting the landlord to the property, does not satisfy the officer's need to confirm a lawful right to occupy. Inconsistency between the address on the agreement and the address on the utility bill is another frequent trigger for refusal.
Common rejection reasons
- The agreement is unstamped or inadequately stamped.
- Signature or thumb impression of the landlord is missing.
- The ownership document does not connect the signatory to the premises.
- The electricity bill or property tax receipt is outdated or in an unrelated name.
- The address on the agreement differs from the address on the application.
- No no-objection from the landlord where the premises is used for a different purpose than recorded.
Our GST and tax law practice advises on registration and replies to departmental queries, and the landlord and tenant team drafts and registration-checks the underlying agreements. Ready clauses are available through our landlord and tenant formats.
Common questions
Can I register GST using a family member's premises?
Yes, provided the family member is the owner or lawfully entitled to let the premises, signs the agreement, and gives ownership proof and a no-objection. The relationship does not remove the need for the documents.
Do I need a separate agreement for each place of business?
Each additional place of business should be supported by its own agreement, ownership proof and utility document for that address.
What if the landlord will not give an NOC?
The absence of a no-objection weakens the application. It is better to obtain it in the agreement itself, as a clause, than as a loose letter that can be disowned later.
Will the officer visit the premises?
Physical verification may be carried out for new registrations or on a risk basis. The premises should carry the business's name board and be reachable at the stated address.
FileX Advocates & Legal Consultants, Kolkata, drafts and files these matters before the Calcutta High Court, City Civil and Sessions courts, magistrate, family, consumer and tribunal forums. Call +91 7439811422 or WhatsApp us for a free first consultation.