GST Makes Startup Founders Smile!
No more taxing days for the startup sphere! GST was launched on 1st July 2017. There were mixed reviews regarding it. But for startups we have got some good news. The ball is in their court.
1. No more VAT-
Before this, businesses having a turnover of more than 5 lakhs had to get a VAT registration and pay VAT. But now that GST is here, this ceiling has been raised to 20 lakhs.
We really got to say...
2. Tax Credit on Purchases-
Startups operating in the service industry are in for a treat. Prior to GST, a service tax had to be paid. Now post 1st July, they can set off the VAT paid on purchases (Eg:- office supplies) with the service tax on their sales. It’s raining cash.
The feeling when GST is bae...
3. Go Digital without any fear-
Using internet to sell goods and services has become the trend and an easy access for startups. But this involved complying with different VAT laws in different states. Now that new tax is applicable all over India, they are relieved of computing different rates in different states. Now we can expect goods to deliver faster.
When you just can't stop thanking GST...
4. Lower taxes for the mid-size startups-
There are benefits introduced for business having a turnover between 20 to 50 lakhs. So, don’t get disheartened. Through a scheme called composition scheme, the taxes have been lowered post GST. Rejoice and use the saved money elsewhere.
Aaye Haye, Oye Hoye GST!!
5. Elimination of distinction between goods and services-
A business dealing in both goods and services had to go through a hassle paying the taxes. But now GST has uplifted this burden by not differentiating between them. The shoulders have become lighter.
It's getting too good to digest now! Just look at those blushes.
Time is money and startups had to spend a lot of their time to look after numerous tax compliances. But GST has given the precious time back to the startups by having one tax for the entire country.
So, only one tax to break your head on.
Can't believe you have so much of your money with yourself?
Enough reasons to be glad? Tell us your views in the comment section below.