General

GST is a Hassle Free and Startup Friendly TAX Structure

6 Feb 2017 By KDK Software

Summary:

Workshop on GST for Startups organized by KDK Softwares on 3rd February 2017 at Startup Oasis
About 40 startups attended the workshop on GST
GST will eliminate the scope of double taxation in certain sectors
Logistic costs goes up with 11 categories of taxes levied on the road transport sector
GST will be a game changer for Indian Economy

Jaipur, 24^th January, 2017: With recent announcement on tax relief to startups by Finance Minister Arun Jaitley in his fourth Union Budget speech, Government has made clear that they are pro towards Startups. Period of claiming profit-linked exemption for startups is increased to 7 years from 5 years. In line with Government’s Standup India, Startup India campaign, government has shown great efforts in promoting and facilitating entrepreneurs of India. With this outlook of the Govt. it is expected that GST may have a soft take on Startups.

Startup Oasis, a Jaipur based incubation center which is developing an ecosystem in Rajasthan, and KDK Softwares have today organised a brain
storming and awareness session on ‘Impact of GST on Startups’ was organised. About 40 Startups attended this and interacted on their queries on GST with expert panels including CAs.

Mr. Manish Ojha (CA), Development Head, KDK Softwares Pvt. Ltd. said,

“GST will not just ease the process but also bring 100% transparency as all the invoices needs to be uploaded by seller are visible to buyer every month. Seller has right to amend the invoice in case something goes wrong and to make this more authenticated transaction, buyer can accept the invoice, modify it or reject it too.”

Mr. Mohit Bhambani, CEO of KDK Softwares Pvt. Ltd. said,

“Many startups are into ecommerce and their logistic costs goes up with 11 categories of taxes levied on the road transport sector. As per one report of CRISIL, GST can reduce logistic costs of companies producing non-bulk goods by as much as 20%. At present various road permits are required under state CST rules and also declaration forms like C/F/H form for availing lower taxation rate. Likewise there will be many such hassles will be removed for ease of business operations. ”

With the recent demonetization and upcoming GST regime, Startups are facing very challenging economic environment in addition to their experience of several highs and lows during the past five years. On the other side, central government is constantly making efforts to create an ecosystem in the country for entrepreneurial growth. Government has created an eco system for providing financial and technical support to Startups and it is expected that GST may have a special space for Startups.

Mr. Chintan Bakshi, COO of Startup Oasis said,

“As we are helping budding entrepreneurs by creating an eco system to start and run a business, we feel honored by organising such sessions for Startups. GST is definitely a game changer for India’s economy growth. It will reduce the unnecessary burden of taxes from the manufactures as well as service providers and thereby help creating Indian entrepreneurs more competitive in domestic and global markets.”

Rajasthan based startups like Zero Waste, Urban Dhobi, Seva, 100 Co-Founders Lab, Law Gurukul, HireTale, Khana Gaadi, Bike on Rent, Hippo Cabs, Myly, Srjna, Cibo and many such more startups representatives attended the session to understand the GST impact on their business.

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