SlideShare ist ein Scribd-Unternehmen logo
1 von 30
Impact of GST on
Indian Startups
By: Mehak Chhabra
(Chief Marketing Officer, Registrationwala)
Topics
Impact on Indian startup
industry.
•The Good & Bad of GST
•Impact of GST on e-Commerce
startups
•Invoicing guidelines checklist
•TAX AUTOMATION
•Conclusions
•Queries session.
Introduction
Goods and Services will usher in the biggest tax reform since 1947. It attempts
at integrating all of India economically. And since it is being passed at a time
where India has become a hub for budding entrepreneurs, exploring the effects
of GST on Indian startups makes all the more sense.
Currently, India has over 4000 startups and forms the third largest startup
ecosystem in the world.
Overall, startups should be happy that the GST bill has been passed.
The Good & Bad of GST
The Good of GST
Taxation is simple
•Every state currently has its own taxation rules and regulations, making the entire
process a function of geography and hence very cumbersome.
• GST attempts to simplify it all for the startups.
•All the indirect taxes will be combined into one, making everyone pay only a single tax.
•And as a consequence of GST's implementation, the tax calculations will be much
simpler, saving time and energy, and encouraging the startups to invest it where it is
much more needed.
The Good of GST
Simple registration
To start a new business, VAT registration is necessary but it is often a put-off to
someone starting up. Different fees need to be paid in each state right now.
With GST, there will be a uniform and a much simplified common registration for
companies all across India. Entrepreneurs will need to just obtain one simple license.
They can do their business in as many states as they like, just that they need to be
paying their taxes. That is it. As simple as that.
This should encourage the businesses to think about expanding, since the new format
allows easier ease of business in other states too.
The Good of GST
Improved logistics
Logistics are a major headache to startups.
Firstly, regular, sometimes unnecessary checks , at the border cause delay, resulting in the customer
receiving the product late. And in a way, the customer pays for it - through time and money.
Secondly, startups are not organized. What big players do is to stock-transfer goods in bulk, thus
getting things done in a single delay and also avoiding paying charges of inter-state transit. Startups
cannot afford that.
They neither have stock-transfer nor do they have logistics in place to combat the delays. So they
have to procure goods through inter-state sales, which makes them bound to pay central sales
taxes.
The Bad of GST
Startups with lesser turnover or startups in the manufacturing sector can have
things complicated.
According to the current excise laws, any manufacturing business
with a turnover of less than INR 1.5 crore is exempted from paying
any sort of duty. After GST comes in full force, this limit - which stands
now at INR 1.5 crore - may be reduced to INR 25 lac, in turn killing
many a small startups.
The Bad of GST
Apart from the manufacturing sector, e-commerce sector will be affected too.
Firstly,Tax Collection at Source, or TCS, directs the companies to file
quarterly as well as monthly returns, making the compliance issues
more complicated. Also, they will need to collect the taxes made from
the portal, and it is not an easy job, given they have so many vendors.
Secondly, ecommerce startups are going to suffer because the terms
'operators' and 'aggregators' have been vaguely defined. Operators
will need to pay the taxes while aggregators will not need to.
The Bad of GST
The extra documentation is set to creep in
When GST is implemented, food prices may shoot up, forcing an
inflation of sorts. Food taxes are set to suffer not only because of this,
but also because there is no clarity whether "mandi tax" is included in
GST or not.
The extra documentation is set to creep in, which will kick up the
administration costs, and the burden will ultimately be on the
customers, who will be paying higher prices for the goods and services.
Conclusion
Logistics, retail and automation sectors emerge as clear winners. They will
hugely benefit from GST and its enforcement. Warehousing is the next in terms
of benefit, as now the inter-state transit and trade taxes will be controlled by the
Centre and are set to be reduced, making the entire process easier and
cheaper.
The future seems rosy but it is yet to be seen how GST individually impacts
different sectors and the startups those sectors house.
Impact of GST on
e-Commerce Startups
Introduction
GST is a bill that will have far reaching impact on the economy and that impact
will be a sum total on its impact on many of the live sectors in India, a country
only second to China in terms of internet market.
To put it simply, e-commerce basically means conducting any commercial
activity using internet as a medium.
GST attempts to address the issue by having a separate chapter on e-
commerce but the proposed rules and regulations could lead to higher
compliance challenges.
Who is under the
umbrella?
According to the chapter, an
'electronic commerce operator'
is any person who owns,
operates or manages an
electronic platform that is used
to facilitate supply of goods and
services or in providing
incidental information or
services as per need.
Who is NOT
under the
umbrella?
Any online retailer who supplies
goods and services on their own
behalf is not included under the
definition of an electronic
commerce operator. Thus, the
process of tax collection at the
source and other suggested
compliances will not be
applicable to them.
Key Issues
Challenge 1
Higher compliance costs
The GST law, will force every ecommerce player to collect tax at source and so deposit the
applicable GST when payment is being made to the supplier.
This will increase the compliance burden on many of the players as they work with a large
number of vendors.
Previously, ecommerce players used to be treated only as service providers and hence
needed to comply only with a central service tax legislation.
Key Issues
Challenge 2
Taxation of stock transfer
GST says that under its regime, certain transactions will also be considered as supplies.
Intra-state and inter-state stock transfers, between any two branches or any two
warehouses of a single e-commerce entity, would be considered as supplies irrespective.
Even though the tax paid will be available as credit, it may cause cash blockages.
Like consider this: in case large quantities of goods are stock transferred, tax liability would
arise first of all which can be counterbalanced only at the time of the final supply, causing a
blockage in the cash flow.
Implications of GST
Challenge 3
Credit available only on tax payment
Credit, GST proposes, can only be asserted on the taxes which have been paid to the credit
of the government.
Implications of GST
Challenge 4
Valuation issues on discounts/incentives to continuous
GST law suggests that the 'transaction value' is the total value of the goods and services in question.
When it comes to discount's inclusion or exclusion, the case depends on the category it falls into.
Discounts have been divided as pre-supply discounts and post-supply discounts. As is obvious, pre-
supply discounts are those discounts which are allowed before or at the time of the supply. These will
not be a part of the 'transaction value'. Post-supply discounts are allowed after supply and need to be
included in the 'transaction value'.
Cash backs and promo codes fall in post-supply discounts but they have not been clearly addressed to.
Conclusion
Though the burden of compliance increases manifold, there are some
significant advantages:
•No cascading taxes
GST will effect a hassle free transfer of credit across supply chains, resulting in
major cascading of taxes, resulting in a lowering of the overall cost of supplies.
•Consolidated tax rates
In the GST regime, both central and state rates are to remain uniform,
simplifying things majorly. A lesser number of disputes is always welcome.
Invoicing guidelines
checklist
TAX INVOICE Checklist
Every registered person required to issue the tax invoices containing
the following particulars:-
(a) name, address and GSTIN of the supplier;
(b)a consecutive serial thereof, unique for a financial year;
(c) date of its issue;
(d) name and address of the recipient and the address
(e) HSN code of goods or Accounting Code of services;
(f) description of goods or services;
(g) quantity in case of goods and unit or Unique Quantity Code thereof;
(h) total value of supply of goods or services or both;
(i) amount of tax charged in respect of taxable goods or services
TAX AUTOMATION
Tax Automation –
What Does This
Mean?
You hear this phrase all the time
now but what does it really
mean? With rapidly changing
technology, people and
companies are all about
automating their various
functions and that’s a good thing
as long as you know what you
are automating and how to
automate it correctly
and efficiently.
Role of GSP and ASP in GST India
GST in INDIA
Goods and Services Tax (GST) is an indirect taxation in India merging 20 million existing taxpayers into
single system of taxation.
Technology backbone for GST in India is GSTN (the Government GST server)
Why every GST liable business needs an ASP/GSP?
To interact and file Tax returns every month, taxpayer will need a platform or software provided by
any of the Application Service (ASP) provider registered under GSTN.
GSPs and ASPs: important constituents of IT
ecosystem
Vital Check points to consider before appointing ASPs
Since a major part of the support provided to a taxpayer in the GSP
and ASP network relates to the enriched interfaces offered by ASP,
taxpayers need to pay particular attention when choosing an ASP.
FEATURES
Providing a basic and convenient front-end interface for Taxpayers.
Continuous and flawless services
Single window to manage ITR, TDS and GST compliance
Compliance filing as per GSTN guidelines.
Value-added services, such as tax alerts, other business registrations and legal
support, Billing Dashboard.
Providing varied input options to upload invoice details to file returns.
ByRegistrationwala
ASP’s will be processing raw data pertaining to a
taxpayer’s sales and purchases
Raw data provided by the taxpayer should contain all the sensitive information
relating to the sales & purchases of the Organization, such as:
•To whom does the taxpayer sell and where do the sales occur?
•What does he sell?
•How much does he sell and at what price?
•From where and from whom does a taxpayer purchase?
•What does he buy?
•How much does he buy and at what price?
ByRegistrationwala
The problem
Data privacy and protection
An Asp’s ability to strictly
maintain data privacy
under properly drafted
non-disclosure
agreements, data security
strengths, and the ASP’s
arrangements for the
protection of shared data.
Value-added services
The extent to which an
ASP provides other
value-added services,
such as trend analysis, tax
alerts, and legal support.
Data retrieval and audit trail
An ASP facility for data
retrieval are very
important, especially
given the statutory
requirements for record
preservation. For a
taxpayer to justify claims
before tax authorities, an
audit trail must be
available.
Conclusion
An important part of GST
compliance will be filing data
with the GSTN. An IT ecosystem
under GST, through a network of
GSPs and ASPs, will help
corporate and tax consultants
achieve better data-based
compliance under the GST
regime.
Registrationwala is an ASP
partnering with TAXMANN (GSP)
in India to provide cloud-based,
GST compliance solutions to
business corporations and
accounting firms.

Weitere ähnliche Inhalte

Was ist angesagt?

Goods and services Tax in India.
Goods and services Tax in India.Goods and services Tax in India.
Goods and services Tax in India.Varadraj Bapat
 
Goods And Service Tax in India, Informative PPT | The all about GST.
Goods And Service Tax in India, Informative PPT | The all about GST.Goods And Service Tax in India, Informative PPT | The all about GST.
Goods And Service Tax in India, Informative PPT | The all about GST.Deepak Poddar
 
Impact of Goods & services Tax in India
Impact of Goods & services Tax in IndiaImpact of Goods & services Tax in India
Impact of Goods & services Tax in IndiaShantanu Basu
 
Goods and Services Tax (GST)
Goods and Services Tax (GST)Goods and Services Tax (GST)
Goods and Services Tax (GST)Supriya Mahajan
 
[GST] Goods & service Taxes
[GST] Goods & service Taxes [GST] Goods & service Taxes
[GST] Goods & service Taxes Harish Bramhaver
 
Overview of GST and its impact
Overview of GST and its impactOverview of GST and its impact
Overview of GST and its impactNilesh Rajput
 
Report on GST - Equentis Research !!
Report on GST - Equentis Research !!Report on GST - Equentis Research !!
Report on GST - Equentis Research !!yashpalsharma
 
Goods and services tax
Goods and services taxGoods and services tax
Goods and services taxkaustubhpd
 
Gst bill 2015
Gst bill 2015Gst bill 2015
Gst bill 2015kjanand
 
CURRENT TAXATION AND GST IN INDIA: IMPACTS ON HOSPITALITY AND TOURISM INDUSTRY
CURRENT TAXATION AND GST IN INDIA: IMPACTS ON HOSPITALITY AND TOURISM INDUSTRYCURRENT TAXATION AND GST IN INDIA: IMPACTS ON HOSPITALITY AND TOURISM INDUSTRY
CURRENT TAXATION AND GST IN INDIA: IMPACTS ON HOSPITALITY AND TOURISM INDUSTRYsandeep kumar
 

Was ist angesagt? (20)

Goods and services Tax in India.
Goods and services Tax in India.Goods and services Tax in India.
Goods and services Tax in India.
 
Goods And Service Tax in India, Informative PPT | The all about GST.
Goods And Service Tax in India, Informative PPT | The all about GST.Goods And Service Tax in India, Informative PPT | The all about GST.
Goods And Service Tax in India, Informative PPT | The all about GST.
 
Gst in india
Gst in indiaGst in india
Gst in india
 
Impact of Goods & services Tax in India
Impact of Goods & services Tax in IndiaImpact of Goods & services Tax in India
Impact of Goods & services Tax in India
 
Gst india 2017
Gst   india 2017Gst   india 2017
Gst india 2017
 
Gst
GstGst
Gst
 
Goods and Services Tax (GST)
Goods and Services Tax (GST)Goods and Services Tax (GST)
Goods and Services Tax (GST)
 
GST presentation
GST  presentation GST  presentation
GST presentation
 
[GST] Goods & service Taxes
[GST] Goods & service Taxes [GST] Goods & service Taxes
[GST] Goods & service Taxes
 
IMPLEMENTATION OF GST IN INDIA - 2
IMPLEMENTATION OF GST IN INDIA - 2 IMPLEMENTATION OF GST IN INDIA - 2
IMPLEMENTATION OF GST IN INDIA - 2
 
Overview of GST and its impact
Overview of GST and its impactOverview of GST and its impact
Overview of GST and its impact
 
Basics of GST
Basics of GST Basics of GST
Basics of GST
 
GST in India
GST in IndiaGST in India
GST in India
 
GST in india
GST in indiaGST in india
GST in india
 
Report on GST - Equentis Research !!
Report on GST - Equentis Research !!Report on GST - Equentis Research !!
Report on GST - Equentis Research !!
 
Goods and services tax
Goods and services taxGoods and services tax
Goods and services tax
 
Gst bill 2015
Gst bill 2015Gst bill 2015
Gst bill 2015
 
Goods and service tax in india
Goods and service tax in indiaGoods and service tax in india
Goods and service tax in india
 
CURRENT TAXATION AND GST IN INDIA: IMPACTS ON HOSPITALITY AND TOURISM INDUSTRY
CURRENT TAXATION AND GST IN INDIA: IMPACTS ON HOSPITALITY AND TOURISM INDUSTRYCURRENT TAXATION AND GST IN INDIA: IMPACTS ON HOSPITALITY AND TOURISM INDUSTRY
CURRENT TAXATION AND GST IN INDIA: IMPACTS ON HOSPITALITY AND TOURISM INDUSTRY
 
GST-Mukesh Jha
GST-Mukesh JhaGST-Mukesh Jha
GST-Mukesh Jha
 

Ähnlich wie Gst for Indian startups and e-commerce By Registrationwala

Easy Guide To GST Implications On E commerce
Easy Guide To GST Implications On E commerceEasy Guide To GST Implications On E commerce
Easy Guide To GST Implications On E commerceeTailing India
 
E-Commerce Firms Help Ready Sellers To Become GST Compliant
E-Commerce Firms Help Ready Sellers To Become GST CompliantE-Commerce Firms Help Ready Sellers To Become GST Compliant
E-Commerce Firms Help Ready Sellers To Become GST ComplianteTailing India
 
How to prepare for GST
How to prepare for GSTHow to prepare for GST
How to prepare for GSTDhruv Seth
 
Government may consider anti profiteering clause to ensure benefits of gst re...
Government may consider anti profiteering clause to ensure benefits of gst re...Government may consider anti profiteering clause to ensure benefits of gst re...
Government may consider anti profiteering clause to ensure benefits of gst re...eTailing India
 
What is GST and its Impact on current entrepreneurs ?
What is GST and its Impact on current entrepreneurs ?What is GST and its Impact on current entrepreneurs ?
What is GST and its Impact on current entrepreneurs ?Zaheer Sayyed
 
GST- GOOD AND SERVICE TAX
GST- GOOD AND SERVICE TAXGST- GOOD AND SERVICE TAX
GST- GOOD AND SERVICE TAXAditya Thakur
 
GST: An Introduction for Entrepreneurs
GST: An Introduction for EntrepreneursGST: An Introduction for Entrepreneurs
GST: An Introduction for EntrepreneursAyushi Mona
 
GST Overview - Know about Goods and Service Tax in India
GST Overview - Know about Goods and Service Tax in IndiaGST Overview - Know about Goods and Service Tax in India
GST Overview - Know about Goods and Service Tax in IndiaMASOOM SEKHAR SAHOO
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthAcademy Tax4wealth
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthAcademy Tax4wealth
 
GST(Goods And Service Tax)
GST(Goods And Service Tax)GST(Goods And Service Tax)
GST(Goods And Service Tax)Ashiwani Atul
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthAcademy Tax4wealth
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthTop 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthAcademy Tax4wealth
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthTop 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthAcademy Tax4wealth
 
GST - Good Service Tax
GST - Good Service TaxGST - Good Service Tax
GST - Good Service TaxSumit Pandey
 
Get Top 20 Interview Questions and Answer in 2023 at Academy Tax4wealth
Get Top 20 Interview Questions and Answer in 2023 at Academy Tax4wealthGet Top 20 Interview Questions and Answer in 2023 at Academy Tax4wealth
Get Top 20 Interview Questions and Answer in 2023 at Academy Tax4wealthAcademy Tax4wealth
 

Ähnlich wie Gst for Indian startups and e-commerce By Registrationwala (20)

Easy Guide To GST Implications On E commerce
Easy Guide To GST Implications On E commerceEasy Guide To GST Implications On E commerce
Easy Guide To GST Implications On E commerce
 
E-Commerce Firms Help Ready Sellers To Become GST Compliant
E-Commerce Firms Help Ready Sellers To Become GST CompliantE-Commerce Firms Help Ready Sellers To Become GST Compliant
E-Commerce Firms Help Ready Sellers To Become GST Compliant
 
How to prepare for GST
How to prepare for GSTHow to prepare for GST
How to prepare for GST
 
Government may consider anti profiteering clause to ensure benefits of gst re...
Government may consider anti profiteering clause to ensure benefits of gst re...Government may consider anti profiteering clause to ensure benefits of gst re...
Government may consider anti profiteering clause to ensure benefits of gst re...
 
What is GST and its Impact on current entrepreneurs ?
What is GST and its Impact on current entrepreneurs ?What is GST and its Impact on current entrepreneurs ?
What is GST and its Impact on current entrepreneurs ?
 
Basic introduction to gst
Basic introduction to gstBasic introduction to gst
Basic introduction to gst
 
GST- GOOD AND SERVICE TAX
GST- GOOD AND SERVICE TAXGST- GOOD AND SERVICE TAX
GST- GOOD AND SERVICE TAX
 
GST: An Introduction for Entrepreneurs
GST: An Introduction for EntrepreneursGST: An Introduction for Entrepreneurs
GST: An Introduction for Entrepreneurs
 
GST Overview - Know about Goods and Service Tax in India
GST Overview - Know about Goods and Service Tax in IndiaGST Overview - Know about Goods and Service Tax in India
GST Overview - Know about Goods and Service Tax in India
 
Who needs GST?
Who needs GST?Who needs GST?
Who needs GST?
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 
GST(Goods And Service Tax)
GST(Goods And Service Tax)GST(Goods And Service Tax)
GST(Goods And Service Tax)
 
3310 pdf
3310 pdf3310 pdf
3310 pdf
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthTop 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 
Gst amar
Gst amarGst amar
Gst amar
 
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealthTop 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
Top 20 GST Interview Questions and Answers in 2023 | Academy Tax4wealth
 
GST - Good Service Tax
GST - Good Service TaxGST - Good Service Tax
GST - Good Service Tax
 
Get Top 20 Interview Questions and Answer in 2023 at Academy Tax4wealth
Get Top 20 Interview Questions and Answer in 2023 at Academy Tax4wealthGet Top 20 Interview Questions and Answer in 2023 at Academy Tax4wealth
Get Top 20 Interview Questions and Answer in 2023 at Academy Tax4wealth
 

Kürzlich hochgeladen

NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...Amil baba
 
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Amil baba
 
The Triple Threat | Article on Global Resession | Harsh Kumar
The Triple Threat | Article on Global Resession | Harsh KumarThe Triple Threat | Article on Global Resession | Harsh Kumar
The Triple Threat | Article on Global Resession | Harsh KumarHarsh Kumar
 
Vp Girls near me Delhi Call Now or WhatsApp
Vp Girls near me Delhi Call Now or WhatsAppVp Girls near me Delhi Call Now or WhatsApp
Vp Girls near me Delhi Call Now or WhatsAppmiss dipika
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Devarsh Vakil
 
Stock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfStock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfMichael Silva
 
Role of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxRole of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxNarayaniTripathi2
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Commonwealth
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书rnrncn29
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...Amil baba
 
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfKempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfHenry Tapper
 
Economics, Commerce and Trade Management: An International Journal (ECTIJ)
Economics, Commerce and Trade Management: An International Journal (ECTIJ)Economics, Commerce and Trade Management: An International Journal (ECTIJ)
Economics, Commerce and Trade Management: An International Journal (ECTIJ)ECTIJ
 
Financial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxFinancial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxsimon978302
 
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptAnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptPriyankaSharma89719
 
Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Sonam Pathan
 
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfmagnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfHenry Tapper
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppttadegebreyesus
 
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...Amil baba
 
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...Amil baba
 
cost of capital questions financial management
cost of capital questions financial managementcost of capital questions financial management
cost of capital questions financial managementtanmayarora23
 

Kürzlich hochgeladen (20)

NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
 
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
 
The Triple Threat | Article on Global Resession | Harsh Kumar
The Triple Threat | Article on Global Resession | Harsh KumarThe Triple Threat | Article on Global Resession | Harsh Kumar
The Triple Threat | Article on Global Resession | Harsh Kumar
 
Vp Girls near me Delhi Call Now or WhatsApp
Vp Girls near me Delhi Call Now or WhatsAppVp Girls near me Delhi Call Now or WhatsApp
Vp Girls near me Delhi Call Now or WhatsApp
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024
 
Stock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfStock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdf
 
Role of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxRole of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptx
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
 
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfKempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
 
Economics, Commerce and Trade Management: An International Journal (ECTIJ)
Economics, Commerce and Trade Management: An International Journal (ECTIJ)Economics, Commerce and Trade Management: An International Journal (ECTIJ)
Economics, Commerce and Trade Management: An International Journal (ECTIJ)
 
Financial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxFinancial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptx
 
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptAnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
 
Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713
 
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfmagnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppt
 
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
 
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
 
cost of capital questions financial management
cost of capital questions financial managementcost of capital questions financial management
cost of capital questions financial management
 

Gst for Indian startups and e-commerce By Registrationwala

  • 1. Impact of GST on Indian Startups By: Mehak Chhabra (Chief Marketing Officer, Registrationwala)
  • 2. Topics Impact on Indian startup industry. •The Good & Bad of GST •Impact of GST on e-Commerce startups •Invoicing guidelines checklist •TAX AUTOMATION •Conclusions •Queries session.
  • 3. Introduction Goods and Services will usher in the biggest tax reform since 1947. It attempts at integrating all of India economically. And since it is being passed at a time where India has become a hub for budding entrepreneurs, exploring the effects of GST on Indian startups makes all the more sense. Currently, India has over 4000 startups and forms the third largest startup ecosystem in the world. Overall, startups should be happy that the GST bill has been passed.
  • 4. The Good & Bad of GST
  • 5. The Good of GST Taxation is simple •Every state currently has its own taxation rules and regulations, making the entire process a function of geography and hence very cumbersome. • GST attempts to simplify it all for the startups. •All the indirect taxes will be combined into one, making everyone pay only a single tax. •And as a consequence of GST's implementation, the tax calculations will be much simpler, saving time and energy, and encouraging the startups to invest it where it is much more needed.
  • 6. The Good of GST Simple registration To start a new business, VAT registration is necessary but it is often a put-off to someone starting up. Different fees need to be paid in each state right now. With GST, there will be a uniform and a much simplified common registration for companies all across India. Entrepreneurs will need to just obtain one simple license. They can do their business in as many states as they like, just that they need to be paying their taxes. That is it. As simple as that. This should encourage the businesses to think about expanding, since the new format allows easier ease of business in other states too.
  • 7. The Good of GST Improved logistics Logistics are a major headache to startups. Firstly, regular, sometimes unnecessary checks , at the border cause delay, resulting in the customer receiving the product late. And in a way, the customer pays for it - through time and money. Secondly, startups are not organized. What big players do is to stock-transfer goods in bulk, thus getting things done in a single delay and also avoiding paying charges of inter-state transit. Startups cannot afford that. They neither have stock-transfer nor do they have logistics in place to combat the delays. So they have to procure goods through inter-state sales, which makes them bound to pay central sales taxes.
  • 8. The Bad of GST Startups with lesser turnover or startups in the manufacturing sector can have things complicated. According to the current excise laws, any manufacturing business with a turnover of less than INR 1.5 crore is exempted from paying any sort of duty. After GST comes in full force, this limit - which stands now at INR 1.5 crore - may be reduced to INR 25 lac, in turn killing many a small startups.
  • 9. The Bad of GST Apart from the manufacturing sector, e-commerce sector will be affected too. Firstly,Tax Collection at Source, or TCS, directs the companies to file quarterly as well as monthly returns, making the compliance issues more complicated. Also, they will need to collect the taxes made from the portal, and it is not an easy job, given they have so many vendors. Secondly, ecommerce startups are going to suffer because the terms 'operators' and 'aggregators' have been vaguely defined. Operators will need to pay the taxes while aggregators will not need to.
  • 10. The Bad of GST The extra documentation is set to creep in When GST is implemented, food prices may shoot up, forcing an inflation of sorts. Food taxes are set to suffer not only because of this, but also because there is no clarity whether "mandi tax" is included in GST or not. The extra documentation is set to creep in, which will kick up the administration costs, and the burden will ultimately be on the customers, who will be paying higher prices for the goods and services.
  • 11. Conclusion Logistics, retail and automation sectors emerge as clear winners. They will hugely benefit from GST and its enforcement. Warehousing is the next in terms of benefit, as now the inter-state transit and trade taxes will be controlled by the Centre and are set to be reduced, making the entire process easier and cheaper. The future seems rosy but it is yet to be seen how GST individually impacts different sectors and the startups those sectors house.
  • 12. Impact of GST on e-Commerce Startups
  • 13. Introduction GST is a bill that will have far reaching impact on the economy and that impact will be a sum total on its impact on many of the live sectors in India, a country only second to China in terms of internet market. To put it simply, e-commerce basically means conducting any commercial activity using internet as a medium. GST attempts to address the issue by having a separate chapter on e- commerce but the proposed rules and regulations could lead to higher compliance challenges.
  • 14. Who is under the umbrella? According to the chapter, an 'electronic commerce operator' is any person who owns, operates or manages an electronic platform that is used to facilitate supply of goods and services or in providing incidental information or services as per need.
  • 15. Who is NOT under the umbrella? Any online retailer who supplies goods and services on their own behalf is not included under the definition of an electronic commerce operator. Thus, the process of tax collection at the source and other suggested compliances will not be applicable to them.
  • 16. Key Issues Challenge 1 Higher compliance costs The GST law, will force every ecommerce player to collect tax at source and so deposit the applicable GST when payment is being made to the supplier. This will increase the compliance burden on many of the players as they work with a large number of vendors. Previously, ecommerce players used to be treated only as service providers and hence needed to comply only with a central service tax legislation.
  • 17. Key Issues Challenge 2 Taxation of stock transfer GST says that under its regime, certain transactions will also be considered as supplies. Intra-state and inter-state stock transfers, between any two branches or any two warehouses of a single e-commerce entity, would be considered as supplies irrespective. Even though the tax paid will be available as credit, it may cause cash blockages. Like consider this: in case large quantities of goods are stock transferred, tax liability would arise first of all which can be counterbalanced only at the time of the final supply, causing a blockage in the cash flow.
  • 18. Implications of GST Challenge 3 Credit available only on tax payment Credit, GST proposes, can only be asserted on the taxes which have been paid to the credit of the government.
  • 19. Implications of GST Challenge 4 Valuation issues on discounts/incentives to continuous GST law suggests that the 'transaction value' is the total value of the goods and services in question. When it comes to discount's inclusion or exclusion, the case depends on the category it falls into. Discounts have been divided as pre-supply discounts and post-supply discounts. As is obvious, pre- supply discounts are those discounts which are allowed before or at the time of the supply. These will not be a part of the 'transaction value'. Post-supply discounts are allowed after supply and need to be included in the 'transaction value'. Cash backs and promo codes fall in post-supply discounts but they have not been clearly addressed to.
  • 20. Conclusion Though the burden of compliance increases manifold, there are some significant advantages: •No cascading taxes GST will effect a hassle free transfer of credit across supply chains, resulting in major cascading of taxes, resulting in a lowering of the overall cost of supplies. •Consolidated tax rates In the GST regime, both central and state rates are to remain uniform, simplifying things majorly. A lesser number of disputes is always welcome.
  • 22. TAX INVOICE Checklist Every registered person required to issue the tax invoices containing the following particulars:- (a) name, address and GSTIN of the supplier; (b)a consecutive serial thereof, unique for a financial year; (c) date of its issue; (d) name and address of the recipient and the address (e) HSN code of goods or Accounting Code of services; (f) description of goods or services; (g) quantity in case of goods and unit or Unique Quantity Code thereof; (h) total value of supply of goods or services or both; (i) amount of tax charged in respect of taxable goods or services
  • 24. Tax Automation – What Does This Mean? You hear this phrase all the time now but what does it really mean? With rapidly changing technology, people and companies are all about automating their various functions and that’s a good thing as long as you know what you are automating and how to automate it correctly and efficiently.
  • 25. Role of GSP and ASP in GST India GST in INDIA Goods and Services Tax (GST) is an indirect taxation in India merging 20 million existing taxpayers into single system of taxation. Technology backbone for GST in India is GSTN (the Government GST server) Why every GST liable business needs an ASP/GSP? To interact and file Tax returns every month, taxpayer will need a platform or software provided by any of the Application Service (ASP) provider registered under GSTN.
  • 26. GSPs and ASPs: important constituents of IT ecosystem
  • 27. Vital Check points to consider before appointing ASPs Since a major part of the support provided to a taxpayer in the GSP and ASP network relates to the enriched interfaces offered by ASP, taxpayers need to pay particular attention when choosing an ASP. FEATURES Providing a basic and convenient front-end interface for Taxpayers. Continuous and flawless services Single window to manage ITR, TDS and GST compliance Compliance filing as per GSTN guidelines. Value-added services, such as tax alerts, other business registrations and legal support, Billing Dashboard. Providing varied input options to upload invoice details to file returns. ByRegistrationwala
  • 28. ASP’s will be processing raw data pertaining to a taxpayer’s sales and purchases Raw data provided by the taxpayer should contain all the sensitive information relating to the sales & purchases of the Organization, such as: •To whom does the taxpayer sell and where do the sales occur? •What does he sell? •How much does he sell and at what price? •From where and from whom does a taxpayer purchase? •What does he buy? •How much does he buy and at what price? ByRegistrationwala
  • 29. The problem Data privacy and protection An Asp’s ability to strictly maintain data privacy under properly drafted non-disclosure agreements, data security strengths, and the ASP’s arrangements for the protection of shared data. Value-added services The extent to which an ASP provides other value-added services, such as trend analysis, tax alerts, and legal support. Data retrieval and audit trail An ASP facility for data retrieval are very important, especially given the statutory requirements for record preservation. For a taxpayer to justify claims before tax authorities, an audit trail must be available.
  • 30. Conclusion An important part of GST compliance will be filing data with the GSTN. An IT ecosystem under GST, through a network of GSPs and ASPs, will help corporate and tax consultants achieve better data-based compliance under the GST regime. Registrationwala is an ASP partnering with TAXMANN (GSP) in India to provide cloud-based, GST compliance solutions to business corporations and accounting firms.

Hinweis der Redaktion

  1. The Good & Bad of GST Impact of GST on e-Commerce startups Invoicing guidelines checklist TAX AUTOMATION Conclusions Queries session.