GST is a Helpful Concept for Start-up

By Registrationwala

9th September 2017


Start-up India innovation has encouraged young entrepreneurs in India. More than 2 months two month have passed after GST Introduction. VAT , Service tax, Entertainment Tax Octroi, Customs Duty etc. were the multifarious and complex indirect tax system.

There are still goods and service on which Goods and Services tax is not applicable such as, petroleum products, real estate many others like import and export of products. GST ambit does not include Stamp duty and electricity.   

Start-up mainly has not got any concessions after GST. New laws have been implemented under key compliance of the indirect taxes regime.GST is more technological tax reform where compliance procedures will be electronic and online on GST portal. There are many other formality that are needed to be fulfilled by taxpayers GST Registration, GST return filing and refund claims. GST also encourages the concept of digital India.


Provisions have not been implemented and so have been delayed till notified. e-Commerce operators will have to deduct 1 per cent TCS (tax collected at source) while making payments to suppliers.

GST Registration

GST regime mandates GST registration for all suppliers of goods and/or services whose annual turnover exceeds Rs. 20 Lakh and Rs. 10 Lakh for those in Hilly states and North Eastern States. In case of inter-state supply it mandatory to register on GST irrespective of the turnover of the business Persons liable to pay under reverse charge, persons making supply on behalf of other taxable persons, person liable to deduct tax at source and e-commerce operators.

Units that were registered under any of the indirect tax laws were automatically rolled over as registered for GST .It also has certain procedural steps that were prescribed to be undertaken.

Unquestionably adding to the simplicity of the system is that enlistment is to be acquired through online mode on the GSTN entrance by recording shapes and transferring the required archives. Indeed, even so some getting teeth inconveniences were confronted including glitches concerning invalid temporary IDs being created, issues with OTPs, and so forth.

New companies may appreciate some break concerning States' VAT and Service Tax edges, producing new businesses which were already required to enlist under Central Excise law at the limit of Rs 1.5 crore will now be at risk to enrol with a turnover of Rs 20 Lakh in a money related year. It is essential that new companies screen this limit in their business in order to guarantee consistence with the GST law.

Input Tax Credit

Input tax credit (ITC) is the spirit of GST and is major to abstain from falling effect of charges (i.e. assess on impose), and in this manner demonstrate inflationary. The GST council has been set rolling and credit would stream flawlessly through the whole inventory network as all assessments paid on sources of info would be accessible as credit in this way, lessening charge costs. There are a few limitations that have been endorsed with respect to qualification and benefiting of ITC and new businesses must screen these to evade wrong claims by them. The procedure for claim of ITC will be founded on an auto-populate framework in the electronic credit record of the new businesses, and streamline the credit taking procedure for the most part.


Return recording commitments are month to month (as likewise one yearly one) yet is totally electronic and on the web, which will encourage the consistence and rapid handling of discount claims. The profits require data of invoicing and coordinating of such data (between purchaser/beneficiary and providers), data identifying with ITC and its inversion.

Distinctive structures and periodicity have been recommended for synthesis conspires, non-occupant assessable people, people at risk to deduct or gather impose (TDS/TCS), Input Service Distributors (ISDs), people who are conceded Unique Identification Number, and so forth.

Consistence in the GST administration will be visit and as normal as one a month. The new companies may select to embrace this procedure without anyone else or look for the help of GSP/ASP which are basically conductors (with some esteem included administrations) between the GSTN toward one side and the new businesses IT frameworks at the flip side. 


GST is a Helpful Concept for Start-up