Hire GST Consultants For Small Businesses And Reap Numerous Benefits

For someone not aware of the term yet, GST or the Goods and Services Tax is a value-added tax levied on goods and services generally sold for domestic consumption. The tax is paid by the consumer and provides revenue for the government. More than 10 years have passed since the bill was passed and the concept of GST has evolved drastically over the decade. It has almost transformed the indirect taxation system in India. It is not just about big organisations but even start-ups and small business owners can reap numerous benefits with GST implementation as it helps in simplifying the indirect tax structure.

4 Reasons Why Small Businesses Should Hire GST Consultants In Kolkata

  • Starting A Business Becomes Easy

Earlier, business owners had to visit the sales tax department in the State they are willing to start a business and get their VAT registration done. This became a challenge for business owners operating in multiple States as different States had different procedures for tax registration. They could not maintain compliance with VAT regulations and would often end up paying fines. The GST registration procedure, on the other hand, is centralised and standardised. A single registration will be applicable across India.


  • Multiple Taxes Integration

One of the main reasons why every State in India had different VAT rates, regulations and procedures is that the VAT regime under which goods and products were taxed was implemented by the Central government. There were also the central sales tax, purchase tax, luxury tax and additional customs duty which complicated it further. Numerous taxes were summed up into one tax under the GST regime. Few of the taxes subsumed under GST are services tax, central excise duty, state-level value added tax, additional customs duty and surcharges, among others.


  • Exemption For Start-ups And Small Businesses

One of the primary reasons why numerous start-ups and small business owners are hiring experienced GST Consultants is that there is GST exemption for them. Under the new GST regime, organisations whose turnover is less than 40 lacks annually don’t have to register their business under GST. If your business turnover is more than that but you don’t have prior experience in GST registration, make sure that the GST consultant you are hiring has dealt with start-ups and small businesses earlier.


GST Consultant in Kolkata

  • Ease The Process Of Doing Business

Few businesses like computer sales and service or restaurants which provided goods and services had to earlier comply with both service tax regulations and VAT. This became a challenge for business owners as different items had different rates and they had to calculate taxes for those transactions. The difference between goods taxes and service taxes vanished after GST was introduced which eased the compliance process. Even invoicing became easier for businesses as they had to adopt only one rate.

Since there are so many ways through which start-ups and small businesses can benefit from GST, it’s time you start looking for experienced GST consultants.

Make in India Concluded in MoUs to Create Job Opportunity

Make in India” Campaign concluded with signing of  MoUs worth Rs.15.2lac crores. Start-ups accelerated , i.e., Start-ups will be registered and create job opportunity for youths.


Few of the companies are as follows:

Sl.No. Investment in (Rs.) Name of Domestic Co. Name of Foreign collaborators Nature of  project
1 8000cr Mahindra Group Automobile
2 1500cr Marcedes Automobile
3 6204cr Rashtriya Chemical & fertilizers Chemicals
4 3000cr Godrej Industries Real estate
5 $400million Oracle Incubator centres

Maharashtra generated more than half the total tally inking MoUs worth nearly Rs.8Lac crore, expected to generate 30Lacs jobs. Within the state ,the Konkan division, which includes the Mumbai Metropolitan Region, concerned the largest share of MoUs,worth over Rs.3.25lac crore.The deprived regions of Vidarbha and Marathwada generated MoUs worth Rs.1.5lacs crore,the region of Western Maharashtra and Khandesh totaled Rs.50000crore and Rs.25000crore respectively.

Besides focusing on manufacture this project has also focused on innovation & start-ups and created a platform where corporate, policy makers and political leaders could converge. Considering the Make in India Week which was aimed at showcasing India’s manufacturing sector which generated 8.9lakh visitors across 102 countries. It played host to 20 Foreign dignitaries, including 2 prime ministers. Over 9000 Indian companies and over 2000 foreign companies participated. The State plans to set up a taskforce for each sector to pursue the progress of the MoUs.

IIT Kharagpur Launches Start-up Cell

IIT Kharagpur has recently set up a centre to establish and promote a ‘culture of innovation’ amongst its students, especially those enrolled in the undergraduate programs.

Start up team

According to reports, this centre will help students who are planning their own start-ups and companies right after graduating from academic institutions.

This initiative has been supported by an alumnus of the academy, Arjun Malhotra, who is also the co-founder of HCL Technologies. He has donated a sum of Rs. 6.7 crore for the cause.

The cell will be called the M.N Faruqui Innovations Centre after a former alumnus and faculty member of the institute. Its launch was announced on the 16th of January by the IIT Director.

Start-ups and Entrepreneurs To Get The Support of the Centre and Angel Investors

The news that’s doing the rounds is, capital gains tax relief for start-ups will now come with riders. Venture capital funds and alternative investment funds will now be eligible for the tax break provided they re-invest their profits in the funds sponsored by the Government.

Start ups and enterpreneurs

According to reports, Prime Minister Narendra Modi intends to set up a Rs. 10,000-crore corpus to foster start-ups and entrepreneurs in India.

Those entrepreneurs who invest their own money in their start-ups will also be eligible for claiming the exemption, provided their profits are invested in new capital assets. All newfangled micro, small and medium enterprises (MSMEs) can enjoy this facility.

Here is what ‘capital assets’ will mean for start-ups – ‘Investment in computer or computer software for core business tasks will be regarded as new assets so as to promote start-ups heavily reliant on technology.’

The meeting was also attended by Finance Minister Arun Jaitley, who revealed that the tax regime for start-ups shall be friendly and make sure that the potential of Indian entrepreneurs is unleashed to the utmost.

Entrepreneurs, on the other hand, have opened up on their eagerness, saying that they will be ‘watching for the fine print of the budget announcements.’ This is because if the Government allows a tax relief to start-up entrepreneurs as well as angel funds, a possible investment rush might surface in the country.

The Government is willing to carry on with this funding process, noting how the funds have raised new hopes amongst the enterprises in the country.

The big players turned angel investors include popular names like Ratan Tata – guru of the Tata Group, Kunal Bahl – the co-founder of Snapdeal, and N.R Narayana Murthy – the co-founder of Infosys.

Start UpsThis apart, start-ups have also been able to convince North Block for tax breaks for employees stock options in this year’s budget. This would be a huge relief because most start-ups in the country belong to the world of technology and eCommerce; they are more dependent on humans than on machines.

For long, employee benefit plans like Espos has been implemented with a view to encouraging human capital all over the world. However, in India, this has not seen much success because Espos is considered as perks and hence, levied at the rate of income.

North Block is now considering if the tax can be lowered or abolished totally. However, there is a major glitch. While Espos can be exempted for start-ups, the established players of the industry might argue that they, too, require human capital, and hence should be exempted from the same. As of now, North Block is looking for a way to strike a balance.

Vivek Gupta, partner at BMR Advisors, said that an expectation from the campaign can be looked up regarding how the Government plans to introduce advantages that can set up an atmosphere featuring more funding avenues like tax exemptions for angel investors, deferral of tax on Espos, and simpler norms for working capital eligibility. Perhaps this will provide entrepreneurs enough time to work on the right business model.