{"id":12862,"date":"2020-07-15T11:27:42","date_gmt":"2020-07-15T05:57:42","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=12862"},"modified":"2020-07-15T11:57:03","modified_gmt":"2020-07-15T06:27:03","slug":"gst-benefits-for-small-businesses-start-ups","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/gst-benefits-for-small-businesses-start-ups\/","title":{"rendered":"A Guide on GST Benefits for Small Businesses &#038; Start-ups"},"content":{"rendered":"\n<p class=\"has-drop-cap\">GST was implemented in the country to alter the complicated tax framework. India&#8217;s government rolled out this tax provision with a slogan of \u201c<strong>One Nation One Tax<\/strong>\u201d to make the compliance procedure more transparent, seamless, and intuitive. This article pays attention to GST&#8217;s brighter aspects and briefs you about the benefits it offers to Start-ups and Small Businesses.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/gst-benefits-for-small-businesses-start-ups\/#Overview_on_GST\" >Overview on GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/gst-benefits-for-small-businesses-start-ups\/#Ease_of_Starting_a_Business_in_India_under_GST\" >Ease of Starting a Business in India under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/gst-benefits-for-small-businesses-start-ups\/#GST_Exemption_wrt_Startups_and_Small_Businesses\" >GST Exemption w.r.t Startups and Small Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/gst-benefits-for-small-businesses-start-ups\/#The_Conclusion\" >The Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_on_GST\"><\/span>Overview on GST <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST stands for Goods and Service Tax, and it is based on an indirect taxation system. This multi-stage and destination-based tax framework have supplanted several indirect taxes in the country, such as VAT, service tax, and excise duty. GST implementation is a shift from the old tax regime to the centralized tax framework that offers numerous benefits to the taxpayers. Unlike earlier tax regimes, GST is levied on all entities that create value through their product and services. Therefore, the <strong>GST tax regime<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Goods_and_Services_Tax_(India)\"><strong>[1]<\/strong><\/a><\/sup> applies to every point of sale, making it a multi-stage tax structure. It&#8217;s important to note that all the inter-state sales are chargeable to State and Central GST.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST benefit for Start-up<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"341\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-72.png\" alt=\"GST benefit \" class=\"wp-image-12863\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-72.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-72-300x178.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ease_of_Starting_a_Business_in_India_under_GST\"><\/span>Ease of Starting a Business in India under GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With the implementation of GST in the country, the method for <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> would be centralized and standardized identical to registration w.r.t service tax. Under this tax regime, a firm across the nation would never have to deal with VAT registrations. The method for obtaining GST registration would also be centralized, which will aid citizens in setup new firms with fewer tax complications.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Regulation of Un-organized sectors<\/h3>\n\n\n\n<p>Previously, industries like\nconstruction and textiles don&#8217;t work under the canopy of tax regulation. The\narrival of GST ensures the comprehensive implementation of the tax reform\nacross every sector. The revamped compliance and payment structures under GST\nhave boosted these firms&#8217; trading capabilities and make them accountable for\nthe misconduct w.r.t tax liabilities. For example, the acceptance of input\ncredit is not possible unless the supplier has accepted the amount.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Implementation of the composite scheme<\/h3>\n\n\n\n<p>The composition scheme is\nan essential part of GST that was rolled out to reduce taxes and other relevant\ncompliances. The scheme aims to obtain taxes from the business owner on their\nturnover. Additionally, the scheme also seeks a quarterly return from these\nentities. The following points will show the regulations offered by the\ncomposition scheme. <\/p>\n\n\n\n<ul><li>Small businesses with more than Rs 1.5 crore of turnovers are entitled to pay a flat GST and file a single return. <\/li><li>Small firms with an annual turnover of more than Rs 50 lakh are accountable for paying 6% of GST. <\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gst-penalty-offences-and-appeals-under-gst\/\">\nGST: Penalty, Offences and Appeals Under GST Act 2017\n<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Subsuming Multiple Taxes in GST<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"529\" height=\"149\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-73.png\" alt=\"Taxes in GST\" class=\"wp-image-12864\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-73.png 529w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-73-300x84.png 300w\" sizes=\"(max-width: 529px) 100vw, 529px\" \/><\/figure><\/div>\n\n\n\n<p>The GST regime is the integration of all the taxes that exist in the old tax reform. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Central Taxes subsumed under GST<\/strong><\/h4>\n\n\n\n<ul><li>Central cess &amp; additional charges <\/li><li>Service Tax<\/li><li>Excise duty<\/li><li>Custom duty<\/li><li>Special additional duty of customs<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>State Taxes subsumed under GST<\/strong><\/h4>\n\n\n\n<ul><li>Value Added Tax, aka (VAT)<\/li><li>Central Sales Tax, aka (CST)<\/li><li>Purchase Tax<\/li><li>Octroi and Entry Tax<\/li><li>State cesses and additional Taxes<\/li><li>Luxury Tax <\/li><li>Entertainment Taxes <\/li><li>Taxes on lottery &amp; betting <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_Exemption_wrt_Startups_and_Small_Businesses\"><\/span>GST Exemption w.r.t Startups and Small Businesses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> The government has waived off the requirement of GST registration for the firms whose annual turnover is less than Rs. 40 lacs. Many start-ups and small businesses across the country will be benefited from this provision. This will let them work seamlessly by averting GST related liabilities. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Simplification of Compliance Procedure under GST<\/h3>\n\n\n\n<p>Previously, businesses that are dealing with consumer appliances or restaurants need to take VAT and Service Tax guidelines into account. The businesses need to go through a hectic process of tax evaluation for different products and supplies. The advent of GST has eased out this difficulty by making compliance procedures simpler for the taxpayers. Due to a single tax proposition, organizations now need not be dealt with complex invoices anymore. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Online compliance processes<\/h3>\n\n\n\n<p>The online portal has made it easy for business owners to file their returns easily. With the centralized digital system onboard, business owners now don&#8217;t need to address different tax entities for registration purposes. Additionally, it also waived off the complexity w.r.t to the manual workflow, making <a href=\"https:\/\/corpbiz.io\/gst-return-filing\"><strong>GST return filling<\/strong><\/a> is a super easy process.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Conclusion\"><\/span><strong>The Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the canopy of GST, the new start-ups and firms will flourish strongly and able to avoid unnecessary tax liabilities. GST implementation still seeks a crucial amendment that will unleash its full potential. On the whole, it still feels more practical and advantageous compared to previous tax reform. Therefore, we can conclude that GST is a catalyst for the growth of start-ups in India. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/authority-of-advance-ruling-on-gst-applicability-2020\/\">\nGST Applicability on Works Contract for NCBS &amp; Food Services for Exempted Institutions: AAR\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST was implemented in the country to alter the complicated tax framework. India&#8217;s government rolled out this tax provision with a slogan of \u201cOne Nation One Tax\u201d to make the compliance procedure more transparent, seamless, and intuitive. This article pays attention to GST&#8217;s brighter aspects and briefs you about the benefits it offers to Start-ups [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":12873,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[764],"acf":{"service_id":"68"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4648,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12862"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=12862"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12862\/revisions"}],"predecessor-version":[{"id":12884,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12862\/revisions\/12884"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/12873"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=12862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=12862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=12862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}