Is GST mandatory for OPC?

Is GST mandatory for OPC?

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Introduction

Starting an OPC has numerous advantages, but knowing GST rules is significant. Filingpoint.com is a reliable service provider that assists OPC owners in being GST and other law compliant. Most of the business people ask whether GST registration is required for their OPC or not. Let’s simplify it.

1. GST Registration Requirement

Not all OPCs need GST registration. But if your turnover exceeds ₹20 lakh (₹10 lakh in some states), registration is compulsory. Even if your revenue is lower, you may still need GST if you sell goods or services online.

2. Interstate Business Transactions

If your OPC sells goods or services outside your state, GST registration is mandatory, no matter your turnover. Without it, you cannot legally do interstate business.

3. Online Business and E-commerce

Operating an online business? GST is obligatory! Amazon and Flipkart, for instance, demand GST registration before you can sell on their platforms. Even service-based OPCs providing digital services throughout India must have GST.

4. Input Tax Credit Benefits

With GST registration, your OPC can avail Input Tax Credit (ITC)—that is, you can offset tax paid on purchases. Without GST, you are losing this significant cost-saving benefit.

5. Voluntary GST Registration

Although not mandatory, voluntary registration can make your business appear more professional and credible. It also enables you to trade with GST-registered customers who prefer to deal with registered businesses.

6. Penalties for Non-Compliance

Not registering for GST when you are supposed to can result in severe penalties. The penalty is 10% of the tax payable, but not less than ₹10,000. Willful tax evasion attracts even steeper penalties.

7. GST Returns Filing

After registration, your OPC needs to file GST returns periodically. Failure to do so incurs late fees and interest charges. Filingpoint.com provides professional services to enable OPCs to remain compliant and avoid unnecessary charges.

Conclusion

Learning GST for OPC is important to steer clear of legal issues and money loss. In case your company qualifies for GST, early registration is the way to go. Filingpoint.com simplifies the process so that your OPC can run smoothly. Get expert advice and remain ahead in compliance today!