Implementing GST is the most successful innovation for startup businesses or industries. It is aimed at achieving the rationalization of the tax system. It has eliminated so many overlapping and complicated indirect taxes and has provided a single regime of taxes. This reform hugely affects the functioning of startups and, in turn, provides several advantages, such as enhanced shipment, improved compliance, and reduction of taxes. However, it also brings challenges like understanding complex regulations and managing cash flow.
How can GST consultants help?
No Need to Maintain Multiple Warehouses
Logistics includes moving goods from origin to consumption. There were days of awkward taxes, multiple warehouses, and movement delays before the implementation of GST. GST has also done away with the need for multiple warehouses for start-ups across states since there is no inter-state sale charge for the movement of stock. This allows logistics players to consolidate warehouses, optimize storage, and reduce maintenance and inventory costs while increasing the management of warehouses.
Cuts Check Posts, Tolls, and Border Inspections
The GST has cut the check posts, tolls, and border inspections that caused corruption and delays in the inter-state movement of goods. GST consultants in India not only decreased logistic costs and transportation time but also increased customer satisfaction and operation efficiency. The GST number for online businesses has also allowed the free movement of goods across the state without any barriers or restrictions.
The Tax Burden for Manufacturing Start-ups
According to the previous structure of the taxation policy, companies that acquired a higher turnover were the only ones that were subjected to excise duty. However, with the advent of GST, the turnover limit has been slashed, which has resulted in many companies coming under the tax net. This has increased the tax responsibilities of many startups, especially the manufacturing industries due to GST policies and regulations. This change has created a testing time for startups since they need to navigate the new tax system and make the necessary adjustments during their early growth stages.
Reduces Compliance Cost in Business
One of the main benefits of GST consultants in India is to simply tax by merging levies into one system. This decreases the ambiguities and complexities of startups and small enterprises, which should deal with different tax rates and regulations across various sectors and states.
Simplifies Procedures for Business with Single Registration
Indeed, another plus of GST is the ease of registration. Business start-ups are no longer required to undertake multiple and different state registrations, as they can do under one regime. This makes it easier for businesses to undertake operations throughout the country with just one registration number and one tax return. The streamlined system reduces administrative complexity, minimizes paperwork, and lowers compliance costs, enabling startups to tap into a broader customer base within the unified market.
Tax Return
GST registration and filing returns can be done online. This makes the registration process not only simple but also extremely quick. Once the documents are in order, it is as easy as pushing a few buttons to get a registration number under GST. Start-ups who may be experiencing some financial constraints can also benefit a lot when it comes to implementing GST. Some of the benefits attained by Indian small businesses include increased thresholds for registration, tax credits on purchases, and simplified processes.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.