How GST benefits the Indian startups To Develop Their Business Capabilities
The growing era of Indian start-ups is evolving in India and is transforming the entire economy of this country. E-commerce is the most booming industry currently in India, which is converting the traditional style of marketing into an electronic model. The youths of India are becoming more inclined towards starting their own companies. It will soon lead to the betterment of Indian society. To promote start-ups, the Indian government has also announced a Startup India campaign. It is to generate more interest in the youth along with tax benefits. Hence GST benefits for startups are innumerable.
One of the best initiatives which the Indian government has introduced is the Goods and Service Tax, which is essential and beneficial to all the start-ups.
Top 10 GST Benefits For Indian Start-ups
1. The taxation system of India is simplified, and the tax laws are entirely appropriate, which makes it easier for the youth to do business in India.
2. The simplified registration process of the business set up is contributed by GST, thus saving a lot of time of the young businessmen.
3. GST made transportation of goods easier from one state to another.
4. Reduction in the cost of shipping and storage.
5. GST provides a distribution model which is helpful for commercial warehouses
6. GST is a business-friendly tax policy which is boosting the Indian startups
7. GST has made calculations easier as earlier there were many taxes such as VAT, service tax which burdened the Indian startups.
8. With GST implementation, it is easier to do business by registering only once. Unlike the previous module, where companies had to be registered again.
9. GST benefits apply mainly to those who transport a wide range of goods as state border tax has been reduced and the reduction of logistics cost goes down to 20%.
10. GST composition scheme is highly beneficial to Indian startups whose turnover is less than one crore. Through this scheme, they have to pay lower taxes compared to others.
According to a NASSCOM report, India stands in the third position internationally having a sum of 4200 startups today. We expect that this number will rise by 10,000 by the year 2020, which will boost the Indian economy. Therefore, these startups will now run and circulate the money throughout the country with their innovative ideas. India was looking for a significant change as there was a lot of congestion in the commercial counterparts. GST benefits offered to the Indian startups will rank India as the highest growing start-up country in the world.
Are you new to the business world? Want help regarding GST registration and business set up in India, contact 3E Accounting for our valuable services.