Impact of GST on Startup and Businesses
Goods & Services Tax (GST) is a consolidated, consumption based tax which will be levied on the supply of goods and services at a national level. It will combine major taxes like excise duty, CST, octroi, service tax, and VAT (value added tax) etc. into a single tax called GST, which will come into effect starting July 1st, 2017. Here are some of the ways startups and other common businesses will be impacted by GST-
Small traders with an annual turnover of up to Rs. 20 lakh won’t be required to register the new GST Act, and with the north-east States, the exemption threshold is Rs.10 lakh. This would save many small scale traders and service providers from undertaking GST agreements and reduce a substantial weight off the shoulders of tax authorities.
The GST in...