Rental Agreement Format for GST Registration

COMMERCIAL LEASE AGREEMENT & GST COMPLIANCE ADDENDUM

Document Control:

• Effective Date: [Effective Date]
• Document Version: 3.4 (GST-Optimized)
• Jurisdiction / Scope: [City, State/Province] / Republic of India (Applicable under CGST/SGST/IGST Acts)

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1. OFFICIAL NOTICE & LEGAL DISCLAIMER

DISCLAIMER: This document is a template drafted by corporate legal counsel for commercial leasing purposes intended to satisfy Goods and Services Tax (GST) registration requirements. Parties acknowledge that lease agreements carry specific stamp duty, registration, and tax liabilities under local jurisdictional laws. Execution of this document without independent legal and financial review may expose parties to regulatory penalties, tax reassessments, or contractual liability. The drafter disclaims all liability for uncustomized deployment.

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2. PARTIES & DEFINITIONS

This Commercial Lease Agreement (hereinafter the "Agreement") is entered into and made effective as of [Date], by and between:

LESSOR (Property Owner):

• Full Legal Name / Entity: [Lessor Full Legal Name]
• PAN: [Lessor PAN]
• Permanent / Registered Address: [Lessor Complete Address]
• Contact Information: Email: [Lessor Email] | Phone: [Lessor Phone] (Hereinafter referred to as the "Lessor", which expression shall unless repugnant to the context include its successors, legal representatives, and assigns).

AND

LESSEE (Tenant / GST Applicant):

• Full Legal Name / Entity: [Lessee Corporate/Trade Name]
• Entity Type: [e.g., Private Limited / LLP / Proprietorship]
• PAN: [Lessee Entity PAN]
• GSTIN (if applicable): [Lessee GSTIN or "Applied For"]
• Registered / Corporate Address: [Lessee Registered Address]
• Contact Information: Email: [Lessee Email] | Phone: [Lessee Phone] (Hereinafter referred to as the "Lessee", which expression shall unless repugnant to the context include its successors, legal representatives, and permitted assigns).

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3. OPERATIVE CLAUSES & TERMS

Clause 1: Grant of Lease and Premises Description

1.1. The Lessor hereby grants, demises, and leases unto the Lessee, and the Lessee hereby takes from the Lessor, the commercial premises situated at [Complete Property Address, Floor, Unit/Room Number] (hereinafter referred to as the "Demised Premises"), having a total super built-up area of approximately [Square Footage] square feet. 1.2. The Demised Premises shall be utilized by the Lessee strictly for commercial/business operations under the trade name of [Trade Name] and for the purpose of obtaining Goods and Services Tax (GST) registration as the Principal/Additional Place of Business.

Clause 2: Term of Lease

2.1. This Lease shall commence on [Lease Start Date] (the "Commencement Date") and shall continue in full force and effect for a period of [Number] months/years, expiring on [Lease Expiration Date] (the "Term"), unless terminated earlier in accordance with the provisions of this Agreement. 2.2. Upon expiration of the Term, renewal shall be subject to mutual written agreement executed via a formal lease addendum reflecting a revised rental escalation of [Percentage, e.g., 5-10]%.

Clause 3: Rent and Financial Terms

3.1. Monthly Rent: The Lessee shall pay to the Lessor a monthly base rent of [Currency and Amount in Figures] ([Currency and Amount in Words]) exclusive of maintenance charges and applicable taxes, payable on or before the [Day, e.g., 7th] day of each calendar month. 3.2. GST Applicability: The Lessee shall pay Goods and Services Tax (GST) at the statutory rate (currently [18]% or as applicable) on the monthly rent to the Lessor, provided the Lessor issues a valid tax invoice compliant with Section 31 of the CGST Act, 2017. 3.3. Security Deposit: The Lessee has paid to the Lessor an interest-free refundable security deposit of [Currency and Amount in Figures] ([Currency and Amount in Words]) via [Payment Mode, e.g., NEFT/RTGS/Cheque No.] on [Date]. The deposit shall be refunded upon the expiration of the lease and peaceful handover of the Demised Premises, subject to deductions for unpaid utilities, property damage beyond normal wear and tear, or contractual breaches. 3.4. Late Fees: Any delay in rent payment exceeding [Number] days from the due date shall attract a late fee penalty of [Percentage, e.g., 1-2]% per month on the overdue amount.

Clause 4: Utilities, Maintenance, and Statutory Compliance

4.1. Utilities: Charges for electricity, water, and internet consumed within the Demised Premises shall be paid directly by the Lessee based on sub-meter readings or proportionate billing. 4.2. Property Taxes: Municipal taxes, property taxes, and structural building levies shall be borne exclusively by the Lessor. 4.3. Statutory Compliance: The Lessee shall comply with all central, state, and local municipal laws, labor laws, and tax regulations applicable to its business operations conducted within the Demised Premises.

Clause 5: Purpose of Lease & GST Registration Authorization

5.1. The Lessor explicitly covenants, declares, and confirms that:

• The Lessor is the absolute legal owner/lawfully authorized lessor of the Demised Premises.
• The Lessor has no objection to the Lessee utilizing the Demised Premises as its Principal Place of Business / Additional Place of Business for the registration and operations under the Goods and Services Tax (GST) regime.
• The Lessor grants explicit permission to the Lessee to submit this Agreement, along with proof of ownership (Utility Bill/Property Tax Receipt), to the jurisdictional GST authorities for the verification and issuance of GSTIN.

Clause 6: Termination

6.1. Either party may terminate this Agreement by providing [Number, e.g., 60] days prior written notice to the other party. 6.2. The Lessor may terminate this Agreement immediately via written notice if the Lessee:

• Fails to pay rent or applicable GST for two consecutive months.
• Uses the Demised Premises for any unlawful, illegal, or hazardous activity.
• Assigns, sublets, or transfers the tenancy without prior written consent of the Lessor.

Clause 7: Governing Law and Dispute Resolution

7.1. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the Republic of India. 7.2. Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, by a sole arbitrator appointed mutually. The seat of arbitration shall be [City, State] and proceedings shall be conducted in the English language.

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4. SIGNATURES & ACKNOWLEDGMENT BLOCK

IN WITNESS WHEREOF, the Parties hereto have executed this Commercial Lease Agreement through their duly authorized representatives as of the Effective Date written above.

FOR LESSOR:

Signature: ___________________________________ Name: [Lessor Authorized Signatory Name] Title: [Lessor Title / Owner] Date: [Date]

In the presence of Witness 1: Signature: ___________________________________ Name: [Witness 1 Name] Address: [Witness 1 Address]

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FOR LESSEE:

Signature: ___________________________________ Name: [Lessee Authorized Signatory Name] Title: [Lessee Title / Director / Partner / Proprietor] Date: [Date]

In the presence of Witness 2: Signature: ___________________________________ Name: [Witness 2 Name] Address: [Witness 2 Address]

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5. STEP-BY-STEP EXECUTION GUIDE

1. Stamp Duty Adjudication: Print this agreement on non-judicial stamp paper of appropriate value as mandated by the Stamp Act of the respective state where the property is located.
2. Notarization & Execution: Ensure both Lessor and Lessee sign all pages in the presence of two independent witnesses. Have the final execution block notarized by a registered public notary.
3. Collateral Documentation for GST: Assemble the following supporting documents alongside this executed agreement for GST portal submission:
   • Latest Electricity Bill or Gas Bill of the Demised Premises (not older than 2 months).
   • Municipal Property Tax Receipt or Proof of Ownership in the Lessor’s name.
   • If the Lessor is renting out the property, secure a formal No Objection Certificate (NOC) explicitly endorsing the Lessee's trade name and GST registration intent.