Five GST Benefits to Newly Start-Up Company – DhanTax

5 Benefits GST to Newly Start-Up Company – DhanTax

 

1. Transparent taxation system:-

The Government has recognized numerous GSPs (GST Suvidha Providers) across the country to help taxpayers register for GST, file taxes, and be GST compliant.

 

2. Reduced cost of compliance :- 

With the subsuming of various taxes into one single tax – GST – there is less complexity in terms of the number of taxes to file.

Hence, there is no need for start-up organizations to assign a separate department to take care of the taxation requirements.

 

3.Provision for availing tax credit:- 

In the pre-GST era, setting up a manufacturing facility was a capital and tax-intensive activity. Acquiring machinery, furniture, and office equipment required substantial capital and taxes to be paid in advance. 

4.Reduced logistics cost:- 

The requirements for Octroi and CST have been done away with, and GST has taken over all the predominant tax requirements, whether it be on intrastate or interstate transportation. Further, reduced taxes on transportation also reduces the overall cost of the goods.

 

5.Better expansion prospects:- 

Most start-ups used to restrict their offices and operations to one particular state in order to save on the taxes and complexities arising out of setting up and operating multi-state offices.

This limited their expansion capability giving them access to a much smaller customer-base and fiercer competition.

While GST registration is still required in all the states they have offices in, there is no need to register for GST if they just sell their products in other states of the country.

This enables them to reach a wider audience and offer their products/services across the nation, allowing them to compete better with the other established companies.

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