Geeky Advice on GST for Startups that only Experts Know
With 41% startups in India claiming negative outcomes due to the introduction of GST for startups, what are the real factors about GST you must know. Unlike consensus, GST can save you money as a startup if you’re smart. Explore the five crucial reasons that make GST for startups beneficial and productive. Start Now!
What to Know about GST for Startups
With coworking spaces set to pay GST of 18%, what are the real benefits of GST for startups? Is it for the better or for the worse? Since the advent of GST and demonetization, much has changed in India entrepreneur marketplace. With 78% startups in India hoping for GST to affect the startups better, it is time to explore the real value of GST on small scale businesses in India.
Explore the real reasons that make the best savings solution for 2018.
1. Low Tax
Before GST, startups had to pay tax when they hit a turnover of INR 5 Lakh. With the introduction of GST, this will change. Only businesses with a turnover of 20 Lakh need to pay taxes. Thus, the burden of Value Added Taxes will disappear for startups. You can grow your startup without the fear of hidden taxes for a few months at the very least with rules GST for startups.
2. Ease of Setup
Logistic cost and setting up a startup will significantly reduce when GST is applied. Moreover, startups will have to individually operate warehouses in the cities they service to avoid surcharges. It will cut operational cost and help you setup your startup easily. Eventually, GST for startups will earn your more profit than without it.
3. One Tax
With GST, you pay one tax for your products. For retail services and restaurants, after adding GST, the two taxes of VAT and Service Tax will merge into one. It will save time for multiple tax production and payment for startups.
4. Low Cross-Border Transactions
With single tax for products and services, cross border transaction rates also blend into one. You don’t need to pay different taxes for different states. It reduces transportation costs of the goods and services too. From moving your goods to tax when you cross the border will also be cut down.
5. Cost of Production
GST will improve startups that manufacture goods than what it was before. From creating competitive products to lessening the taxes, cost of production is deemed to decrease with the imposition of GST for startups.
6. Save on your Budget
Multiple savings on the tax to transportation and production makes GST for startups beneficial. If you’re a startup with experience of accounting GST, drop us a comment below!
The Real Estate Expert Says ….
Set to better GDP by one point, GST has already bettered coworking spaces. It is best for startups to save costs too. Explore the effects of GDP on coworking spaces here. Opt for GST for startups to better your profits in 2018.
Book a FREE consultation with our Real Estate Expert to discuss GST for renting coworking office space in India.