The Goods and Services (Tax) Bill which has been passed in Lok Sabha is likely to bring drastic changes tax collection is done in the country.
Additionally, GST is likely to bring many benefits for startups in India.
Below are listed some of the imminent benefits which are likely to follow as a result of the introduction of GST across India
Starting a new business will be comparatively easier as rules will be same across the country. As of now, VAT registration process is complicated and varies from state to state. With a uniform process being implemented across the country, things are likely to become easier.
A startup has to deal with different kind of taxes while initiating the business. Integration of all such tax will happen, once GST is in place and it will require less time to complete the formalities.
With different states having a varied process for entry tax and all other associated charges, logistic is a major issue. Once GST will be in place, transportation is likely to become easier since the similar tax will be in place across all the states as interstate taxes will stand eliminated.