5 Things Early-stage Start-ups Must Be Aware Of To Avoid GST Notices
The last decade has witnessed an exponential rise in the start-up ecosystem in the country. While the COVID-19 outbreak and the effects of the lockdown in 2020 may have dented this ecosystem, the year 2021 registered a return on the growth trajectory. Today, the start-up ecosystem in India, which had started as a software-intensive hub, is now industry and location-agnostic and has expanded leaps and bounds across industries and service sectors.
This has been possible on account of various government initiatives, the availability of skilled workers, access to capital, and a supportive business environment. This has in turn led to a steady growth for the country in the ranks of ‘ease of doing business’.
Amongst the diversified government measures that encourage start-ups in India, GST is the most critical one as far as the indirect tax perspective is concerned.
While the compliances have been largely simplified vis- à-vis the erstwhile regime, the government (through the GST Council) has in recent times upped the ante on the administration and vigilance front through extensive use of technology to plug revenue leakages and to curb tax frauds.
