GST registration for an One Person Company (OPC)

What is the Procedure for GST Registration of an OPC?

Step 1: Visit the GST Portal

Start by visiting the official GST portal at www.gst.gov.in. On the homepage, click on ‘Register Now’ under the ‘Taxpayers’ section to begin your registration process.

Step 2: Fill Part A of the Application (Form GST REG-01)

Enter basic details such as the company’s PAN, mobile number, email ID, and the state in which you want to register. You will receive an OTP on both your email and mobile number for verification.

Step 3: Receive a Temporary Reference Number (TRN)

After successfully verifying the OTPs, a Temporary Reference Number (TRN) will be generated. This number helps you log in later and continue with the second part of the application.

Step 4: Fill Part B of the Application

Log in using the TRN and fill out the rest of the form. This part requires details about your business, the company’s address, the director’s information, bank account details, and the documents required for registration. Make sure all information matches the official records.

Step 5: Upload Digital Signature Certificate (DSC)

Since the Companies Act requires the registration of an OPC, the director must sign the GST application using a Class 2 or Class 3 Digital Signature Certificate (DSC).

Step 6: Submit the Application

Fill in all the details, upload the documents, and then submit the application form. Use either the DSC or the Electronic Verification Code (EVC) sent to your registered mobile number and email to complete the submission.

Step 7: Application Review by GST Officer

After submission, a GST officer will review the application. If everything is correct, your application will be approved. If there are any issues or missing details, you will receive a query and must respond within seven working days.

Step 8: Get Your GSTIN and Certificate

If your application is approved, you will receive a GSTIN (Goods and Services Tax Identification Number) and a GST registration certificate. You can download the certificate directly from the GST portal

Post GST Registration Compliance for an OPC

1. Display GSTIN at the Business Premises

The OPC must display its GST Identification Number (GSTIN) on a signboard outside its principal place of business and any additional places of business. This is a legal requirement under the GST Act.

2. Issue Tax Invoices

Every sale or supply made by the OPC must be accompanied by a proper tax invoice containing all mandatory details like GSTIN, invoice number, date, value, and tax breakup (CGST, SGST/UTGST, IGST).

3. File Monthly or Quarterly GST Returns

An OPC must file the following GST returns depending on its turnover and chosen scheme:

• GSTR-1: For outward supplies (monthly or quarterly)
• GSTR-3B: Monthly summary return of outward and inward supplies
• GSTR-9: Annual return (if applicable, usually for turnover above ₹2 crores)

4. Maintain Proper Records and Books of Accounts

The OPC must maintain accurate records of all purchases, sales, input tax credit (ITC), stock, and tax payments. It must keep these records for 6 years from the due date of filing annual returns.

5. Payment of GST

You must deposit the GST collected on sales with the government by the due date (usually the 20th of the following month for GSTR-3B). If you delay the payment, you will incur interest and penalties.

6. Reconciliation of Input Tax Credit (ITC)

The OPC should regularly reconcile the ITC claimed with the details in GSTR-2B (auto-generated) and promptly correct any mismatches to avoid issues during audits.

7. Amendments and Updates

If there are changes in the company’s details (address, director, nature of business, etc.), they must be updated on the GST portal by filing an application for amendment in GST registration.

8. GST Audit (if applicable)

If the OPC’s aggregate turnover exceeds the threshold limit (₹5 crores), it may be required to get its accounts audited and file GSTR-9C.

Consequences for a Non Compliance

• Financial Penalties: Non-compliance attracts fines and penalties under the GST Act. These can include fixed monetary penalties or a percentage of the unpaid tax. Over time, these can severely impact the company’s cash flow.
• Interest Liability: If an OPC fails to pay GST on time, it is liable to pay interest at 18% per annum on the outstanding tax amount. This adds an extra burden on the company.
• Ineligibility to Claim Input Tax Credit (ITC): Delayed or incorrect filing of returns can lead to loss of ITC. This increases the effective cost of purchases and affects the company’s pricing and profitability.
• Suspension or Cancellation of GST Registration: If the company continuously fails to file returns or comply with GST norms, the GST department can suspend or cancel its registration. Without a valid GSTIN, the company cannot operate legally.
• Legal Consequences: In serious cases like tax evasion or fraud, the OPC and its director(s) may face legal proceedings, including prosecution, which can affect business credibility and reputation.
• Impact on Business Operations: Suppliers and clients often prefer working with GST-compliant entities. Non-compliance can lead to loss of business opportunities, delayed payments, or strained vendor relationships.

Voluntary GST Registration: When should an OPC Consider it?

Voluntary GST registration refers to registering under GST even if the OPC’s turnover is below the threshold limit (₹40 lakhs for goods, ₹20 lakhs for services). It is done at the company’s discretion to avail specific benefits. Below table will explain you clearly when should an OPC consider voluntary GST registration;

Conclusion

GST registration is an important step for a One Person Company (OPC) to stay compliant with tax laws and enjoy benefits like input tax credit and smooth business operations. Whether mandatory or voluntary, registering for GST helps an OPC build credibility and expand its reach. Timely compliance with GST rules can avoid penalties and ensure the company runs without legal issues. Overall, GST registration supports the growth and professionalism of an OPC in today’s business environment.

Suggested Read :

Form MGT 7A for OPC

OPC Compliance After Incorporation

How to obtain PAN & TAN for OPC?

Advantages and Disadvantages of an OPC

Documents Required for OPC Registration

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