Here’s How GST Impacts the Start Ups in Different Ways
As a result, individuals are spared from the tax burden they had to carry all this time. The introduction of a GST calculator has also helped in better understanding the applicable taxes as well as the claimable returns. The new tax scheme has greatly helped the start-ups as the new tax structure has subsumed all the existing indirect taxes and resulted in relaxation of the same.
Therefore, a newbie in business such as the start-ups can get along without having to pay huge taxes along with certain other benefits as well.
Impacts on start-ups due to GST
India is considered as the 3rd largest innovator in the world in terms of technology. With several financial institutions offering business loans to start-ups, the number of such successfully initiated fledgling businesses has increased over time. Thus, with the introduction of GST, the start-ups have been largely impacted which are the real innovation hubs of today.
The following points discusses the various ways in which GST has impacted on start-ups –
- Simpler taxation process
The prime motive of GST was to ease the process of taxation. Thus, start-ups are now able to predict the taxes with GST calculator. Also, they can manage their personal finances well as business finances conveniently.
- Registration threshold
With the GST rollout, businesses with a turnover of more than Rs. 20 Lakh are required to register and pay the mandatory taxes via the system. Thus, the start-ups which generally do not have such turnovers are exempted. The threshold increase has helped start-ups in utilising their start up loans effectively and saving some extra time and effort.
- Logistics efficiency
Maintaining of multiple warehouses can be done away with as GST has been successful in uniting the taxation levied by the State and Centre separately. Thus, you need to work on how to improve your warehouse efficiency and benefit the most from a simplified logistics setup.
- Tax credit
Most start-ups that are in the service industry can largely benefit through GST by purchasing office supplies. The current tax structure exempts the amount paid for purchasing office supplies and with the help of a GST calculator, you can calculate the tax on other payments easily. As a result, start-ups can ensure that the business never runs out of working capital.
Simultaneously, to grow your start-up, you can also avail a business loan from a reputed financial institution at affordable interest rates. Bajaj Finserv offers Business Loans up to Rs. 30 Lakh sanctioned within a day of application.
Eventually, in the past 2 years, India has witnessed a variety of reactions towards the implementation of GST. GST calculators available online today are just one of the many steps taken by private and public authorities to make GST easier to understand for borrowers. However, considering the start-ups, the changes have paved the way for their growth and sustainable development in the future.
Rohan is a passionate financial blogger and financial adviser. He has been serving society as a financial adviser for past 6 years. He has amazing solution for every finance related query. He shares his financial tips and tricks on Greetings of the Day.