Top 8 Benefits of GST for Small Businesses and Startups

Category: Law

Easy Registration Process: With the introduction of GST, the registration process has become easier for small businesses and startups. GST registration can be done online through the GST portal. StartUp Portal, a professional firm, can assist entrepreneurs in the GST registration process. Increased Threshold Limits: Under GST, businesses with an annual turnover of up to Rs. 40 lakhs are exempted from paying GST. For businesses with a turnover between Rs. 40 lakhs to Rs. 1.5 crores, a composition scheme is available, where they can pay a flat rate of tax. Input Tax Credit: With GST, businesses can claim input tax credit for the taxes paid on purchases made for business purposes. This can help reduce the tax liability and improve cash flow. Simplified Tax Filing: GST has simplified the tax filing process, making it easier for small businesses and startups to comply with the tax laws. StartUp Portal can assist entrepreneurs in the GST filing process. Reduction in Prices: GST has replaced multiple indirect taxes, which has led to a reduction in the prices of goods and services. This can benefit small businesses and startups, as they can save on the cost of raw materials and other inputs. Elimination of Cascading Effect: Under the previous tax regime, businesses had to pay taxes on taxes, leading to a cascading effect. With GST, the cascading effect has been eliminated, which has led to a reduction in the overall tax burden. National Level Tax: GST is a national level tax, which means that it is uniform across the country. This can benefit small businesses and startups that operate in multiple states, as they don't have to deal with multiple tax systems. Improved Competitiveness: GST has made the taxation process more transparent and efficient, which has improved the competitiveness of small businesses and startups. This can help them compete with larger businesses and expand their operations. https://www.startupportal.in/top-8-benefits-of-gst-for-small-businesses-and-startups/