GST- a bane or boon for the startups?

GST aims to bring good news for startups!

Thanks to GST roll-out from July 1, 2017, there are opportunities for new startups in the GST space. These new startups aim to help the SMEs, traders and businesses through their technology, innovation or software to ease their operations. They expect a significant demand of their software from traders, SMEs and professionals.

The new startups are banking on accounting software as everything, including tax-paying, return-filing or other things need to be routed through digital technology under the GST.

These SMEs are eyeing over 80 lakh users, under the purview of GST regime. Out of this, nearly 85 per cent are SMEs dependent on cloud-based software offered monthly or annually. The fate of GST will solely depend on technology infrastructure. S Iswaran, director of Product Management, Zoho, a US-based software company said that back office operations could no longer be treated as low priority tasks.

Everything has to be processed through the digital technology under the GST. And that includes paying tax, or filing return.

Under GST adoption, the company looks at around 20-30 lakh licensees. For such cases, the company emphasizes on business application, technology adoption in relation to GSTN, knowledge transfer and training.

GSTwala, a Delhi-based startup resolves queries relating to GST. It develops an integrated platform where a user could easily post any queries while filing the GST returns under GST regime. Another startup EasemyGST is a cloud and mobile-based application that assists business enterprises and MSMEs in becoming GST compliant. This startup has currently announced a partnership with Microsoft India for providing a comprehensive, secure and robust GST integration.  

Do you think the new GST regime will really benefit the existing and upcoming startups of our country? Do share your views.

Source: Business Line, The Tribune