Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Business > Impact of GST on Startups

Loan for Business

Impact of GST on Startups

Impact of GST on Startups

The Goods and Services Tax (GST) will replace all types of indirect taxes providing relief to the taxpayers. The new tax regime is expected to boost the Indian economy and simplify the tax procedure. The GST will be levied on sales, production, and consumption of goods and services at the state and central government levels.

Know More

Here are four effects of the new tax regime on startups.

1. Immunity for new ventures

Ventures with a turnover of INR 5 lakh and more are required to register for VAT and pay the same. However, GST increases this limit to INR 20 lakh (10 lakh for northeastern states) and higher. Furthermore, companies with turnover between INR 20 lakh and INR 50 lakh will be able to opt for the composite scheme. In addition, GST will make it easier for entrepreneurs to start their ventures. Under the pre-GST regime, companies required VAT registration from the sales tax department along with several processes and fee payments in every state. GST now provides a uniform procedure enabling centralized registration providing an encouraging environment for entrepreneurs. This may also see an increase in the demand for business loans as entrepreneurs take advantage of the positive post-GST environment.

2. Relief for services sectors

Some service sector businesses like restaurants are categorized as sales and service providers. As a result, they must adhere to two tax regimes which are food and service. Such businesses are required to calculate service tax and VAT separately, which makes the entire procedure cumbersome and complex. GST offers relief to ventures in the sales and services sector by combining the two categories wherein the taxes are calculated on the total amount.

3. Logistics and transportation cost reduction

Interstate movement of goods will become easier in the post-GST. Border checks will reduce and this will significantly cut down the transportation time. This will also benefit companies as it will reduce their transportation and logistics expenses. Businesses will be able to free up working capital by decreasing inventories. In addition, the need for commercial loans may witness an increase as companies gear up for new opportunities that become available after GST implementation.

4. Simple revenue systems

Entrepreneurs spend lots of time and energy in managing and complying with multiple tax requirements and regulations. They need to understand and adhere to a large number of regulatory requirements in different states, which makes the entire process of starting a new venture very complicated. GST will not only override all the various taxes but also simplify the entire regulatory procedure.

There may be certain issues that arise with the implementation of GST, such as an increase in the cost of a business loan. However, in the long-term GST will benefit startups by providing a positive environment for new ventures.

Apply Now

Give Your Business the Right Boost: Apply for a Business Loan Today

Apply now
Popular Searches
business idea udyogini scheme hsn code full form low investment business ideas top 10 most successful businesses to start transport business import export business in india mineral water plant cost collateral free loans
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Important Information

Investor Information

Visit us on:,Visit us on: www.tatacapitalmoneyfy.com,www.tatacapitalmoneyfy.com

Our Private Equity Funds

Amalgamated Companies

Top Branches
Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.