Is GST mandatory for OPC: Navigating the Tax Landscape

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Is GST Mandatory for OPC Navigating the Tax
Landscape
First and foremost one must be well clear with
what is One Person Company (OPC), so what is
OPC? The company which is formed by one person
and carries out the entire business by himself
is called OPC. As, GST Mandatory for OPC, the
registration of OPC is legal and provided under
SEC2(62) in Companies Act 2013. Many OPC
companies have enrolled to register GST. Now
after great development in technology, GST
registration can be done entirely online. No need
to submit the physical documents for
registration. The OPC has to submit certain
documents for the registration of GST. Here are
the listed documents which are required for GST
registration.
Table of Contents

• Documents Required for GST Registration for OPC
• Who is required and not required to register for
  GST?
• Restrictions of One Person Company
• FAQ

Documents Required for GST Registration for OPC

• PAN Card of the company is needed.
• Registration Certificate of the company.
• Memorandum of Association /Articles of
  Association of the company
• PAN card, Photo and aadhar card of the director
  of opc

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• Bank details a copy bank statement
• Proof of appointment of the authorized signatory
  which means the letter of authorization
• Proof of address for the primary and secondary
  places of business (Basically premise)
• Copy of certain bills like electricity bill,
  landline bill, water bill, municipal khata copy
  and property tax receipt of the company owned
• In the case of a rented office, the owners
  no-objection certificate (NOC) must be submitted.

Who is required and not required to register for
GST?
Required to register The OPC Companies who sell
goods or services and which have the annual sales
adding up to more than Rs. 20 Lakhs for only
Services and Rs. 40 Lakhs for only Goods are
eligible and must register for GST. One Person
company for GST Registration Regardless its
annual turnover, the company must be involved in
supplying goods and services must register for
GST. For example An OPC registered in Karnataka
who supplies goods to Tamil Nadu must register
for GST. Not required to register The one who
is required to register for GST is farmers and
entities who are engaged only in the business of
supplying goods or services are fully exempt from
tax and entities engaged in the business of
selling and distributing agricultural products,
are not entitled to register under GST. Some
other examples are the Non-taxable goods
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like petrol and alcohol for human consumption are
not required to register for GST and Special
Economic Zones fall under the GST exemption list

• Also read related articles
• Expert tips for successful OPC Registration
• EXPLORING THE ADVANTAGES OF ONE-PERSON COMPANY
• Restrictions of One Person Company
• As GST Mandatory for OPC, Here are some
  restrictions of One Person Company
• Only One Shareholder As it is well known that
  section 2(62) of companies act 2013 provides
  that the company can be formed with one director
  and one member. Likewise when it comes to the
  shareholder, the opc can have only one
  shareholder. This is one of the restriction faced
  in opc. the shareholder must be a natural person
  , resident of India and above 18 years
• Nominee Shareholder If in case, the shareholder
  is dead, the nominee of that shareholder can
  enter into the company and proceed with the
  business. The
• nominee should have the same eligibility that has
  been specified for shareholders
• Limited Investment The major restriction faced
  in OPC is limited investments. The opc cannot
  invest more as it faces a struggle to fulfill the
  expenses by a single member.
• Capital Threshold yes , opc have capital
  threshold. As there is only one member in one
  person company and the capital which is invested
  is low, so the law has decided and fixed the
  maximum limit of capital for OPC which is
  Rs.50,00,000 (Rupees fifty lakhs).
• Conversion of OPC into Pvt. Ltd. Co. Now it is
  known that, OPCs have a capital limit, which is
• RS. 50, 00,000 So, if any OPC exceeds the
  threshold limit of capital or, should
  compulsorily convert into Private Company or a
  public co., which must be done legally.
• No. of OPC A person cannot be a member of more
  than one OPC, In an OPC only one person shall be
  present at a time.
• Director Qualification there are certain
  qualifications for the director of OPC like he
  must be a natural person , resident of India,
  above 18 years and the
• director must be residing ( must not absent) in
  India from the last 180 days in the preceding 1
  year.
• Restricted Activities The opc is restricted in
  Non-Banking Financial Investment activities
  which includes the investment in securities of
  any other body corporate.

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• A person may establish a company with one member
  and one director in accordance with the
  Companies Act. It is provided in section 2(62) of
  companies act 2013.
• Numerous OPC companies have registered for GST
  since after the introduction of the GST on July
  1, 2017. The GST registration can be done online.
  It is not required to provide tangible proof.
  Based on the companys PAN number, the GST Number
  will also be provided in fifteen-digit numbers.
• FAQ
• Can one start a business without GST
  registration?
• Small businesses can operate in India without
  registering, but doing so is advised to take
  advantage of certain benefits and to maintain
  legal compliance. A business entity that has not
  finished the official registration process and
  does not have official governmental recognition
  is referred to as an unregistered firm.
  Unincorporated business is another name for this
  type of company. In India, sole
• proprietorships and partnerships, where one or a
  few people own and run the business, are
  examples of unregistered companies.
• What is the turnover limit for OPC?
• If a One Person Companys annual sales revenue
  exceeds Rs. 2.00 crores or its paid up capital
  exceeds Rs. 50 lakhs, the One Person Company must
  be legally changed into a Private Limited
  Company
• Is audit compulsory for OPC ?
• OPCs (One Person Companies) must name an auditor
  by submitting Form ADT-1. An essential
  compliance step that guarantees the independent
  review and verification of the Companys
  financial statements is the engagement of an
  auditor.
• Can a person without GST registration collect
  tax?
• No, a person who has not registered for GST is
  unable to collect GST from clients or to claim
  any input tax credits for GST that he has already
  paid.
• Is annual return Mandatory for OPC?

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• must submit all required ROC files, including
  annual returns and financial statements.
• Can OPC have more employees?
• Absolutely. One Person Company (OPC) designates a
  business where you, the sole shareholder, will
  possess all of the companys shares. This has
  nothing to do with employee hiring and is only
  related to business ownership. Even more than one
  director is permitted in your OPC.
• What is the capital restriction for OPC?
• If an OPCs turnover surpasses 2 crores and its
  paid-up share capital exceeds 50 lakhs, it loses
  the right to function as a one-person business
  and is required to change to a private or public
  limited company. Continue reading to learn more.
  The notion of an OPC was established in the
  Companies Act of 2013.
• Is AGM mandatory for OPC?
• OPC is not required to hold an annual general
  meeting, but the deadline for filing Form MGT 7
  is 60 days after the end of the 6-month period
  following the end of the fiscal year, which
  means the deadline is on the 60th day after
  September 27.
• Is GST registration not required for below 20
  lakhs?
• Businesses having yearly income up to Rs. 40
  lakhs (or Rs. 20 lakhs for states that fall
  under a specified category) are excluded from GST
  registration, according to the GST Act. The
  threshold ceiling or GST exemption ceiling are
  common names for this ceiling restriction.
• What is the penalty for not registering the GST?
• A taxable person who fails to register for GST
  despite being obliged to do so by the CGST Act
  is subject to a penalty of Rs. 10,000 or the
  amount of tax evaded or
• any short tax due, whichever is larger, in
  accordance with Section 122 of the CGST Act.