GST software for startups

GST will have a huge impact in many industries. The media and industry officials are constantly discussing how GST will change the way India is doing business and how some will benefit from this change in the tax system.

With hopes that GST is implemented correctly, the potential benefits outweigh the drawbacks and India might become a better place to do business, both for locals and foreign investors. This can only benefit startups and other small businesses, so there is no better time like the present to prepare for the changes that GST will bring.

Some key changes for startups:

Now

Need to register for TIN when turnover exceeds INR 10 Lakhs

Compliance under Excise, VAT, CST, Service Tax and potentially others

Tax paid at every state border, making it difficult for startups to deliver all over India

Having to go to tax offices for registration and filling

GST

Need to register for GST when turnover exceeds INR 20 lakhs

Deal goods, services or both, and pay one GST tax

Free flow of goods all over the country, removing entry taxes, paying only IGST

Do it yourself online: registration, returns, payment of GST all through one portal

Potential problems for startups & businesses:

Compliance: Ensuring all invoices are kept properly and tax returns are filed on time, with little time to spare for such activities
GST implementation: not knowing what to do might cost a business more than it has to give. Planning ahead for adopting GST is crucial.
Cash flow: GST returns are filed up to 3 times/month, stay organized and on top of your financials with bills paid on time.
Useful technology: Startups usually have the advantage of easily adopting new technologies, but their business depends on finding the right fit.