GST Advantages for Startups and Small Businesses

GST registrations have brought revolutionary change in the field of company registration in our country. The old tax regime had the cascading effect on new start-ups and small businesses, and sometimes the old tax had created huge problems & obstacles for the newly registered firms. It encourages new firms to incorporate quickly, and can act tension free regarding taxation. Goods and Services act 2017 provides the ample opportunities for the aspiring entrepreneurs to move forward with their business plan without anxiety regarding taxation. GST registration is completely online, so there is no possibility of administrative delay & obstacles.

In West Bengal the existing businesses houses and start-up small businesses also benefited hugely from the GST registration in Kolkata. The new small businesses and start-ups of Kolkata are having following advantages due to GST registration:

Advantages:

• One of the biggest advantages of GST registration is its lesser tax compliance & burden. This benefits the start-ups & small businesses.
• So many old indirect taxes like VAT, CST, Service Tax, Excise etc have submerged to GST, which has created the positivity among the small business owners about GST registration.
• The huge burden of cascading tax effects have completely gone due to the introduction of GST.
• Economic & Commercial activity has increased significantly due to the fast tax online compliance process of GST.
• With the increased demand and consumption of goods, the economy is boosting rapidly.
• The start-ups and small businesses are now freer to organize their business through company registration in Kolkata, as they don’t have to stress regarding GST compliance.
• One of the top advantages of GST registration is that, the taxes on manufacturing sectors have significantly reduced due to the introduction of Goods & Services Tax 2017.
• Input tax credit (ITC) facility and carried forward credit ledger balance help the incorporations to reduce their tax burden.
• The businesses which are registered under the

company registration in Kolkata are largely benefited from the GST.

GST can be best summarized as the best applicable online indirect tax platform in India. The ease of doing business has increased significantly because of the replacement of old and redundant tax structure. There were deficiencies in Pre GST tax structure, and the introduction of GST has an objective to reduce these deficiencies. Few of the difficulties of previous tax regime were Plethora of taxes, multiple tax events, Double Taxation etc. One of the major advantages of GST is its constitutional power, enforceability and strong administrative mechanism at the central level. Start ups and small businesses not only benefited by the GST, but also easy compliance process makes their daily operation simpler. Daily accounting and bookkeeping expenses of Startups have also reduced, which in terms is helping them to reduce overall expenses. The long term benefits of GST will boost the national income of the country by enhancing the capabilities of small firms.

The central & state taxes like central excise duty, state VAT, Luxury Tax, Entry Tax, Service tax, central sales tax and so many other kinds of taxes have been subsumed under GST. With this perspective The cost of book keeping small businesses and start-ups

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