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Dear Professional Colleagues,

Greetings of the Day !

The Assam Goods and Services Tax department has issued Circular No.01/2023 dated July 7, 2023, regarding the furnishing of valid rent agreement/ lease deed duly registered with the sub-registrar or such competent authority for seeking GST registration.

The Extracts of circular:

“Whereas it has come to knowledge that many unscrupulous persons/entities have obtained GST registration on the basis of forged documents like electricity bill, rental agreements, etc. After obtaining registration, such fraudsters issue fake invoices without there being any actual supply of goods and services and creates a chain of fake input tax credit (ITC), and defraud the government exchequer causing huge loss of government revenue.

Therefore, in order to prevent such fake/bogus registration and duping of Government revenue, it is directed that registering authority shall not grant any GST registration unless the applicant furnishes a valid rent agreement /leased deed duly registered with the sub-registrar or such competent authority for registration of rental/lease deed.”

AMRG Take

It is noteworthy that the requirements of GST registration are governed by section 25 of CGST Act’2017 which further refers to Rule 8 of CGST Rule 2017 whereby it is clearly mentioned that person requiring the GST registration shall fill the form REG 01, which specifies the requirement of documents as follows in case of Leased/Rented property. The relevant extracts of REG 01 “(b) 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.”

Thereby as on date, there is no requirement in the form to get leased dead with sub-registrar authority. This step could be seen as a problem for thousands of MSME taxpayers.

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Hope you find it interesting and useful to read.

For any clarification/ feedback, feel free to write us at amrg@amrg.in.

Best regards,

AMRG Team

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AMRG & Associates is an established Chartered Accountants firm. It came into existence in 1984 and since then has grown its branches across major Indian cities such as Delhi, Mumbai and Chandigarh. Since its inception, it has become one of the leading chartered accountants’ firms in North India. AMRG & Associates offers its clients a wide range of exceptional services through the expertise of its highly motivated group of trained professionals. The firm provides expertise in financial and business advisory, tax and regulatory, audit and assurance and risk advisory services.

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© -2022 AMRG & Associates All Rights Reserved. This document has been written for the general interest of our clients and professional colleagues and is subject to change. This document is not to be construed as any form of solicitation. It is not intended to be exhaustive or a substitute for legal advice. We cannot assume legal liability for any errors or omissions. Specific advice must be sought before taking any action pursuant to this document.

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