With the implementation of the new tax system, there are many queries that one has to undergo. The GST registration has a greater impact on the startups. Some of them are as follows:
- Higher threshold for registration:
Any business set up that has a turnover of more than or equal to five lakhs has to get GST registration. Under GST the threshold is about 20 lakhs for all the startups. There is also a scheme for lower taxes for the small-scale industries or the small businesses. This is known as the composition scheme.
- Tax credit on the purchase can be enjoyed:
There are a lot of startups which are indulged in the industries, and that is they pay the service tax. Under the GST schedule, one can set off Vat on the purchases with the service tax which cannot be counted under the sales which they cannot do under the current schedule.
- The online simpler procedure under GST:
The entire process starts with the registration and the filing of the GST online and thus, it cannot be denied that the process is quite simple to have opted. There is no difficulty for the startups as they will not have to run around to get registrations under excise, Service tax, VAT etc.
- Transparent taxation:
Startups often work under quite a tight budget and cannot have much attention left to be given devotedly for the tax under VAT, Service tax, CST, Excise etc. Thus the GST has made it easier for them to sort it all out at once without really bothering a lot. The starts that deal with the goods and services can deal with this in much of an easier way. You can make it easier by paying one tax at one, and that is GST instead of looking after the payment of both the tax.
- E-commerce and other startups:
Many startups are making the use of technology innovatively thereby claiming their presence grandly online. GST is applicable all over India, and thus when it comes to the tax, there is merely no complication in the flow of the goods from one state to other. Currently, the country has forced different VAT laws. At times the authorities of the taxation also seize goods when they fail to produce the documents. Again they get treated as facilitators, and they again require to register VAT.
The logistics industries in the country have to maintain numerous warehouses across many states so that the current CST and the state entry tax on the movement of the interstate goods can be avoided. Reduction in the useless logistics can be of great help for the startups of India to get merely indulged in the supply of goods by transportation.
In this way, one must take the help of the GST registration for service provider to get these things done. Rather one can also make the use of the GST registration procedure online to pay the taxes with ease and thereby make your business safe.