Is GST Registration Mandatory for OPC?

Is GST registration mandatory for OPC? Find out more in this article.

According to Section 2(62), a company with only one member is defined as OPC. The director of the OPC company is not the same as the director of the company. Since the introduction of GST on 01 July 2017, many OPC companies have migrated or enrolled for registration for GST. GST registration can be completed entirely online. Physical documents are not required to be submitted. In order to register for GST, OPC must submit scan copies of documents. GST Number is a 15-digit number that is based on the PAN number of the company.

Applicability of GST registration for OPC

Presume the supply of goods and services is conducted across the state, regardless of annual turnover. In that case, a one-person company must register for GST. GST registration is required and is broken down into five simple steps for easy comprehension.

Turnover Criteria

The supply of goods or services which has an annual turnover more than ₹20 lakhs in case of services and ₹40 lakhs in case of goods shall apply for GST registration.

Supply Outside State

The registration of GST is required for a one-person company if the business of supply of goods or services is across state irrespective of their annual turnover. For instance, GST registration is required if an OPC registered in Gujarat supplies goods to Punjab.

Existing VAT / Service tax / Excise registration

An existing OPC with a service tax / VAT / Excise registration is required to enroll for GST Registration. The GST department initially provided a provisional ID and password for GST migration. From dream to reality. Speed up your registration of one person company.

E-commerce Seller

OPC Companies that supply goods or services via an e-commerce platform must apply for GST Registration. For instance, an OPC company selling goods on e-commerce platforms such as Flipkart, Paytm, and Amazon must apply for GST for work contracts in India.

Casual Person

A casual taxable person only occasionally supplies goods or services but does not have a fixed place of business. A casual taxable person could be a fireworks shop set up during the Diwali festival, selling fireworks, or a temporary food stall.

List of Documents for GST registration of OPC

• OPC Company PAN card
• AOA & MOA
• OPC certificate
• PAN & address and a registered proof of director
• Mobile number
• Email id
• Bank details and a copy of a canceled check or a bank statement
• Appointment of an authorized person by board resolution
• Copy of electricity bill, landline bill, water bill, municipal khata copy, property tax receipt as proof of address of company’s own office
• In the case of a rented office, a rent agreement and a letter of no objection (NOC) from the owner is required.

Mandatory Conditions for the Formation of an OPC

• OPC can only by one person
• An OPC shall have a nominee who must be a natural person
•  If the paid-up capital or turnover exceeds ₹50 lakhs or ₹2 crores, the OPC must convert itself into a private company or public company
• The OPC cannot voluntarily convert itself into a public or a private company before two years have passed from the date of its company incorporation.

Sections of the Companies Act, 2013 Which Do Not Apply to an OPC

1. Section 98: Power of Tribunal to call meetings of members
2. Section 100: Calling of an extraordinary general meeting
3. Section 101: Notice of meeting
4. Section 102: Statement to be annexed to notice a
5. Section 103: Quorum for meetings
6. Section 104: Chairman of meetings
7. Section 105: Proxies
8. Section 106: Restriction on voting rights
9. Section 107: Voting by show of hands
10. Section 108: Voting through electronic means
11. Section 109: Demand for poll
12. Section 110: Postal ballot
13. Section 111: Circulation of members’ resolution