Goods and Service Tax
EligibilityCriteria and Application Procedure of GST for Startups
Goods andService Tax was implemented in India in 1 July, 2017. It has brought a newfinancial revolution in the country. It subsumed all other existing taxes like SalesTax, Service Tax and Excise Duty which the companies had to comply with andthese laws varied from state to state. With GST, every state follows andimplements only one law for taxation issues.
How Does GST Work?
GST islevied at the point of sale and not production and at each stage of valueaddition, GST will be levied, hence it enables the buyer to bear only thosecharges that are levied by the last supplier of the entire the supply chain.
It supportspeople to acquire more affordable goods and boost the gains and purchasingpower of the entire Indian economy.
GST act as acatalyst to provide a boom to the Indian start-ups thereby empowering them togrow as the GST unwinds.
Register Your Startup for GST
Eligibility Criteria for GST registration
All startupscompanies, whose turnover exceeds INR 25 Lakhs, are eligible to enrol for GST.In north-eastern states, entities are comparatively exempted with eligibilityrequirement being set as a turnover exceeding INR 10 Lakhs.
If theentity trades in non-taxable products or the business of exporting products toforeign lands, GST registration is compulsory.
Itincorporates all entities which are dealing in the export of software and hadbeen untaxed previously.
An entitysupplying goods and services to another state within India require registeringitself for GST regardless of the size of turnover.
Thosecompanies who were previously registered under those laws which are subsumed byGST such as VAT registration, Service tax registration, they are givenprovisional registration for six months. These companies need to get GSTregistration after their six months provisional period.
GST is brining the concept- one nation, one tax. Earlier SMB were limited due to the fear of tax burden. GST has eliminated all these obstacles and encourages startups to look beyond the intra-state business.