• Slide 1

    Article Details

    Find, consult and hire the best Lawyers in India

GST-HOW START UPS ARE BENEFITED

2017-07-17 10:39:55
GST-HOW START UPS ARE BENEFITED

·         Simpler Procedures: Since the idea is “One Nation, One Tax, One Market”, inter-State movement of goods and services will become less burdensome as the multi-point taxation will be done away with. It will reduce the procedural formalities therein, and simplify the compliance requirements needed to keep in mind.

·         Raised Slab: Businesses can save a considerable amount of expenses under various heads since the slab under CGST Regime has been placed at Rs.20 Lakhs (Rs.10 Lakhs for Scheduled States) instead of the lower slabs under the VAT Regime; giving a wider window for businesses to stay exempted from liability.

·         Cost Reductions: A unified taxation system would do away with the individual tax-barriers placed by States, and bring down the cost of logistics and distribution chains. You can divest these savings into your business to achieve better productivity and efficiency instead.

·         Wider Reach: Removal of multiple tax barriers imply that businesses can easily expand and enter new markets across their own State borders without incurring great expenses or going to complex formalities. Your Start-Up gets to enter more markets simultaneously and reach a wider group of consumers, giving you an advantage that was not previously available.

·         Input Tax Credits: Businesses can avail the benefit of input tax credit system under the GST Regime[i], whereby credit of all three (IGST, CGST and SGST) can be used for discharging IGST liability. But only credit of IGST & CGST can be taken in CGST Act and that of IGST & SGST can be taken under SGST Act. Input Tax means the {IGST and CGST} in respect of CGST Act and {IGST and SGST} in respect of SGST Act, charged on any supply of goods and/or services to him which are used, or are intended to be used, in the course or furtherance of his business[ii].

 

The Registration and procedures under the new GST regime is facilitated further by detailed informative content released by the Govt through the portals of the Ministry and the CBEC. If you are looking to have a start-up of your own, now the time seems to be good enough to enter the market and exploit the advantages introduced by the new unified taxation regime.

You might as well consider GST a beginner’s luck!



INDIAN KANOON

[i] S. 2 (1) (d) of the IGST and  S. 2 (57) of the MGL

[ii] FAQs on GST, published by the CBEC, in p. 91 available at http://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/faq-on-gst.pdf


LEGAL REMEDIES FOR PROPERTY DISPUTES

LEGAL REMEDIES FOR PROPERTY DISPUTES

13 February 2018   03 09 PM
Read More
Is builder reputation important for investing in real estate?

Is builder reputation important for investing in real estate?

30 January 2018   05 26 PM
Read More
REMEDIES FOR DELAYED POSSESSION UNDER RERA - Legal Resolved

REMEDIES FOR DELAYED POSSESSION UNDER RERA - Legal Resolved

27 January 2018   11 48 AM
Read More
What is the best way to handle cheating partner?

What is the best way to handle cheating partner?

25 January 2018   12 09 PM
Read More
HOW A LAWYER CAN HELP TO RESOLVE BUILDER DISPUTES?

HOW A LAWYER CAN HELP TO RESOLVE BUILDER DISPUTES?

23 January 2018   05 07 PM
Read More
BUILDER DISPUTE- NCDRC OR RERA?

BUILDER DISPUTE- NCDRC OR RERA?

16 January 2018   01 41 PM
Read More
Importance of filing a Legal Notice in India - Legal Resolved

Importance of filing a Legal Notice in India - Legal Resolved

09 January 2018   05 15 PM
Read More