For GST registration at rented premises, upload a valid rent or lease agreement together with one ownership document of the landlord, such as a property tax receipt, municipal khata copy or electricity bill. Under CBIC Instruction No. 03/2025-GST, the landlord's identity proof is needed only when the rent agreement is not registered, and officers should not ask for more.
The agreement is checked line by line against the address you type in REG-01, so small mismatches cause most queries. Below: what the rules require, what the agreement should say, how to upload it, and the GST on rent that follows once you are registered.
Rent agreement requirements at a glance
Point | Position |
|---|---|
Main document | Valid rent or lease agreement for the principal place of business |
Landlord's ownership proof | Any one: property tax receipt, municipal khata copy or electricity bill |
Landlord's ID proof | Only if the rent agreement is unregistered (Instruction No. 03/2025-GST, dated 17 April 2025) |
Where it is uploaded | REG-01, Principal Place of Business tab, nature of possession Rented or Leased |
Registration of the agreement | Compulsory for leases over one year under the Registration Act, 1908; 11-month agreements are usually notarised |
Tax on rent after registration | Commercial rent from an unregistered landlord: 18% under reverse charge (Notification No. 09/2024-Central Tax (Rate)) |
What CBIC accepts for rented premises
CBIC Instruction No. 03/2025-GST, dated 17 April 2025, tells officers to seek only the documents listed in REG-01. For rented premises, a valid rent agreement and any one ownership document of the lessor are enough; the lessor's PAN, Aadhaar or photograph should not be demanded where the agreement is registered.
Where the agreement is unregistered, such as a notarised 11-month agreement, the instruction adds the landlord's identity proof to the list. Keep a copy of the landlord's PAN or Aadhaar ready if your agreement is notarised rather than registered.
Registered or notarised: which agreement works?
Both work for GST registration. Under Section 17 of the Registration Act, 1908, a lease for more than one year must be registered with the sub-registrar, which is why many businesses sign 11-month agreements on stamp paper and have them notarised.
Point | Registered agreement | Notarised 11-month agreement |
|---|---|---|
Term | Any term, including over one year | Up to 11 months, renewed each time |
Cost | Stamp duty and registration fee as per state | Stamp duty on the stamp paper and notary charges |
Extra GST documents | None beyond the ownership proof | Landlord's ID proof as well |
Renewal risk | Low for longer terms | Must be renewed before expiry; an expired agreement fails verification |
Our view: if you expect to stay more than a year, a registered agreement saves the yearly renewal and the risk of an officer finding an expired agreement during verification. Stamp duty rates differ by state, so compare the one-time cost with eleven months of repeated paperwork.
What the rent agreement should include
The officer compares the agreement with the application, so these details must match exactly:
Clause | What to check |
|---|---|
Tenant's name | The legal name of the business as on its PAN, or the proprietor's name for a proprietorship |
Landlord's name | Same as on the ownership document you upload |
Full address | Shop, floor and building number, street, city and PIN code, exactly as typed in REG-01 |
Purpose | Permits business or commercial use |
Term | Current on the application date, not expired |
Rent and deposit | Stated amounts |
Signatures | Both parties, with witnesses, on stamp paper of the right value for your state |
A clause that removes doubt about using the address for tax registrations is useful. A sample, which your lawyer can adapt to your agreement:
Sample clause: "The Lessee may use the Premises for its business and may register the Premises as its place of business under the Goods and Services Tax laws and other applicable laws. The Lessor shall provide such documents as may be reasonably required for this purpose." |
Common rent agreement situations
Agreement in a director's or partner's personal name
If a partner or director rented the premises personally, the business is not the tenant. Upload the rent agreement with a consent letter from that partner or director allowing the business to use the premises; our NOC and consent letter format shows how.
Residential flat used as an office
A residential property can be the principal place of business if the agreement permits business use. Note the GST on rent: renting a residential dwelling to a registered person is taxed under reverse charge, with a carve-out for a proprietor renting it as his own residence rather than for the business.
Co-working space or virtual office
A co-working operator provides its own agreement and supporting documents rather than a conventional rent agreement. Requirements and risks for these are covered in our guides to virtual office GST registration.
How to upload the rent agreement in REG-01
In Part B of REG-01, open the Principal Place of Business tab and enter the address exactly as in the agreement.
Select Rented or Leased as the nature of possession.
Upload the rent or lease agreement as the proof of the principal place of business.
Upload one ownership document of the landlord: property tax receipt, khata copy or electricity bill.
For an unregistered agreement, also upload the landlord's identity proof.
Complete Aadhaar authentication; a failed authentication can trigger physical verification of the premises.
What an officer looks for at the premises is explained in our guide to GST physical verification, and the wider premises rules in what proof of principal place of business actually means.
GST on rent once you are registered
From 10 October 2024, Notification No. 09/2024-Central Tax (Rate) made rent for commercial property paid by a registered person to an unregistered landlord taxable under reverse charge at 18%. From 16 January 2025, Notification No. 07/2025-Central Tax (Rate) excluded composition taxpayers from this entry.
Example: a trader registered under the regular scheme pays ₹25,000 a month for a shop to an unregistered landlord. The trader pays ₹4,500 GST each month in cash under reverse charge and can usually claim the same amount as input tax credit. If the landlord is GST-registered, the landlord charges GST on the invoice instead.
Registering at rented premises? Send the agreement and ownership proof to Keshav's team before filing. Talk to us about GST registration at ComplyLocal →
