Automobile Searches Soar Across India: 306% Jump in 2-Wheeler Searches, 193% in 4-Wheelers Amid GST Shift

• Two-wheeler searches surged 306% Pan-India (Sep–Mid Oct 2025 vs Mid Jul–Aug 2025), led by Delhi (+161%), Mumbai (+174%), Hyderabad (+129%), Pune (+150%), Chennai (+143%), and Bangalore (+116%). 
• Four-wheeler searches rose 193% Pan-India over the same period, with major traction in Bangalore (+153%), Mumbai (+125%), Pune (+123%), and Delhi (+80%)
• Justdial data highlights that the dual impact of GST reduction and festive momentum has fuelled a sharp rise in automobile-related searches across metros and emerging cities

With the festive season already setting the stage for high-value purchases, India’s automobile market is witnessing renewed energy, a trend further amplified by the recent reduction in the Goods and Services Tax (GST), which has improved affordability and boosted consumer sentiment across vehicle categories.

Under the revised structure, small cars (petrol engines up to 1,200 cc / diesel up to 1,500 cc and up to 4,000 mm in length) are now taxed at 18% instead of 28%, while larger-capacity vehicles attract a flat 40% rate. This change is expected to make entry-level and compact vehicles significantly more affordable for buyers.

According to data from Justdial, India’s No. 1 local search engine, automobile-related searches have surged sharply in recent months, reflecting the combined influence of festive buying momentum and the GST cut. To gauge this shift, Justdial compared search trends between September–Mid October 2025 and Mid July–August 2025.

During this period, two-wheeler searches spiked 306% Pan-India, underscoring strong consumer response to improved price accessibility and festive buying sentiment. Delhi (+161%), Mumbai (+174%), Pune (+150%), Hyderabad (+129%), Chennai (+143%), and Bangalore (+116%) emerged as the leading growth markets.

Four-wheeler searches mirrored this enthusiasm, growing 193% Pan-India in the same period. Demand accelerated in Bangalore (+153%), Mumbai (+125%), Pune (+123%), and Delhi (+80%), highlighting how the GST cut has encouraged both first-time buyers and upgraders in the mid- and premium segments.

Together, the data reveals that policy reform and festive optimism are jointly fuelling India’s automobile revival. The GST rate cut has expanded affordability, while the festive season, traditionally associated with new beginnings and major purchases, is amplifying intent across both two- and four-wheeler segments.

With search volumes rising across metros and Tier-II cities alike, Justdial’s findings signal a market firmly in motion, where affordability, aspiration, and accessibility are converging to power India’s next wave of automobile growth.

APPENDIX

GST Effect 2025 (Sep–Mid Oct’25 vs Mid Jul–Aug’25)

Two-Wheeler:

• Pan India – 306%
• Delhi – 161%
• Mumbai – 174%
• Hyderabad – 129%
• Pune – 150%
• Chennai – 143%
• Bangalore – 116%

Four-Wheeler:

• Pan India – 193%
• Delhi – 80%
• Pune – 123%
• Mumbai – 125%
• Bangalore – 153%

About Just Dial Limited

Just Dial Limited provides local search related services to users in India through multiple platforms such as Desktop/PC website (https://www.justdial.com), mobile site (https://t.justdial.com), mobile apps (Android & iOS), over the telephone (Voice, pan India number 88888-88888) and text (SMS). Justdial’s latest version of JD App, is an All-in-One App, replete with features like Map-aided Search, Live TV, Videos, Stock quotes, etc. to make the life of the consumer infinitely smoother & more engaging.

The Company has recently launched its B2B marketplace platform, JD Mart. JD Mart platform, available at https://www.jdmart.com and via apps on Play Store and App Store, is aimed at enabling millions of India’s manufacturers, distributors, wholesalers, retailers to become internet-ready in post-COVID era, get new customers and sell their products online. The platform offers digital product catalogues to businesses and aims at digitalising India’s businesses, especially MSMEs, across categories. Buyers can discover quality vendors offering a wide selection of products to choose from, spread across millions of categories to suit all B2B needs.

Justdial has also initiated transaction-oriented services for its users. These services aim at making several day-to-day tasks conveniently actionable and accessible to users from one App. With this step, Justdial is transitioning from being purely a provider of local search and related information to being a direct/ indirect enabler of such transactions. Justdial has also recently launched an end-to-end business management solution for SMEs, through which it intends to transition thousands of SMEs to efficiently run business online and have their adequate online presence via their own website, mobile site. Apart from this, Justdial has also launched JD Pay, a unique solution for quick digital payments for its users and vendors.

What Every SME Should Know About GST Number Search

Understanding GST number search is central to the way small and medium enterprises operate today. The importance of verifying a GST number extends far beyond simple compliance, as it helps protect your SME from potential fraud, loss of input tax credit and audit issues.

A GST number or GSTIN functions as a unique identifier for businesses registered under India’s Goods and Services Tax regime. It plays a key role in ensuring trustworthy transactions and transparent tax practices for every business owner and partner.

Many SMEs face challenges when managing suppliers or onboarding new customers. Without a solid GST number search process, you risk dealing with unregistered or non-compliant entities. That can lead to avoidable legal complications, delayed input credits and operational hurdles.

This blog explains everything you need to know about GST number search. You will learn what it is, how to perform it and why it matters for every SME aiming for sustainable growth and reliability in Indian business.

What is a GST number and why does it matter?

A GST number is a 15-digit code assigned to businesses registered under GST in India. It’s built from your PAN, a state code, entity number and a unique check digit. For SMEs, knowing and verifying GST numbers is part of building resilient relationships with vendors, clients and statutory bodies.

Citing the correct GST number ensures you get input tax credit and lowers your risk during audits. The GSTIN must be included on all invoices, e-way bills and tax returns. Missing or incorrect GST numbers can result in compliance issues and potential financial penalties.

How SMEs can conduct a GST number search

Knowing the correct process helps you avoid costly errors, prevent fraudulent dealings and build stronger relationships with your suppliers or clients. SMEs can use both official government sites and trusted third-party platforms to conduct these searches efficiently.

1. Official GST portal

Visit the official GST website and click ‘Search Taxpayer’. Enter the GSTIN, PAN or business name. This shows registration status, addresses and more official details.

2. Search by GSTIN

Enter the 15-digit GST number to instantly view business details, registration status and filing compliance.

3. Search by PAN

If you only have a PAN, use the portal’s option to list all GSTINs linked with that PAN. This is handy when suppliers have multiple registrations.

4. Company name search

Some secure third-party tools let you search using a trade or legal name. After locating a GSTIN, always cross-check it using the GST portal or another reliable site for absolute certainty.

What SMEs gain from GST number verification

GST number search adds a critical layer of security. For entrepreneurs and SME managers, the biggest benefits include:

• Staying away from suppliers using fake or deregistered GST numbers
• Safeguarding input tax credit claims by using only genuine GSTINs
• Getting all business invoices and statutory records in perfect order
• Protecting your business during government audits and tax assessments
• Ignoring GST verification exposes your SME to fraud, compliance slips and unnecessary financial losses.

4 tips to perfect your GST number search

Mastering GST number search goes beyond simply locating a GSTIN; it is about refining your verification process to safeguard your SME from potential errors or compliance issues.

Here are practical tips that every business owner should integrate into their regular workflow for reliable and secure GST operations.

1. Always use the official GST portal or reputable third-party sites when checking GST numbers.
2. Verify the registration status, business name and address linked to each GSTIN.
3. Double-check the GST number structure: valid GST numbers follow a specific pattern with identifiable state and PAN details.
4. Keep a record of every GST verification for future reference and audits.

Careful checks now can save hours of trouble later. Together, these steps can make your verification process more reliable and audit-ready.

Secure your SME: Take action with a reliable GST number search

Staying proactive with GST number search can define your SME’s long-term success in India’s competitive market. Every verification you carry out helps prevent costly errors and ensures your tax input credits are legitimate and traceable. With GST compliance integral to audits and partnerships, your efforts today create lasting trust and credibility for your business.

Ready to take control of your SME’s compliance and credibility? Start your GST number search today with a trusted tool from Pine Labs. Validate every new partner, and ensure every transaction meets the highest standard of trust. Learn more at https://www.pinelabs.com.

Government of India Appoints Bhaskar Reddy Vemireddy as Judicial Member of GST Appellate Tribunal

The Government of India has officially appointed Bhaskar Reddy Vemireddy, Senior Advocate at the Telangana High Court, as a Judicial Member of the Goods and Services Tax Appellate Tribunal (GSTAT).

This appointment is part of a broader move by the government to make the GST Appellate Tribunal fully operational. A total of 53 Judicial Members have been approved for appointment, marking a significant milestone in strengthening the dispute resolution framework under the GST regime.

Vemireddy Bhaskar Reddy is a designated Senior Advocate at Telangana High Court. He was enrolled as an Advocate in 1987 and he has been practicing since then before the High Court at Hyderabad. He was specialized in Tax laws. He was appointed as Spl Assistant Govt pleader for taxes before the High Court for taxes in the year 1993 and worked till June 1994. He has been designated as Senior Advocate by Telangana High Court in the year 2022 and has lucrative practice in both the telugu States.

The establishment of a robust and efficient GST appellate system is expected to reduce litigation timelines and enhance trust in the indirect tax system.

Binance Gets ₹772 Crore GST Demand Notice

Binance's return to India has garnered attention, but it comes with a ₹772 crore tax demand from Indian authorities. Despite the regulatory challenges, Binance aims to comply.

On 6th of this month, Binance, the world’s largest crypto exchange, has been issued a notice in India by the Ahmedabad zonal unit of the Directorate General of GST Intelligence (DGGI). The notice demands a Goods and Services Tax (GST) payment of Rs. 772 crore (roughly equivalent to $91.95 million).

Binance allegedly collected fees from Indian customers but did not register under the Indian GST framework. The fees reportedly reached at least Rs 4,000 crore and were transferred to a foreign-based company.

The notice serves as an opportunity for Binance to present its case and align its business operations with India’s legal framework. The Bengaluru Commissionerate will oversee the proceedings, given Binance’s absence of a physical headquarters in India.

As per Indian authorities, Binance users in India had been circumventing tax laws, resulting in lower earnings declarations.

In December 2023, the Indian Ministry of Finance's Financial Intelligence Unit (FIU) issued notices to several offshore crypto exchanges, including Binance, for operating illegally in India. The issue centered around Binance not being registered as a "reporting entity" and not submitting routine statements to the Indian Income Tax Department.

Binance paid a fine of approximately $2.25 million to the FIU for violating Anti-Money Laundering (AML) regulations. It also committed to rigorous AML controls and tax reporting processes.

Binance's return is expected to inject new vigor into the Indian crypto market, fostering competition, innovation, and improved services for crypto enthusiasts.

Binance has committed to robust Anti-Money Laundering (AML) controls and tax reporting processes. It paid a $2.25 million fine to the Indian Financial Intelligence Unit (FIU) for violating AML regulations. Despite an $86 million tax demand, Binance intends to comply with Indian tax laws. The demand is related to Goods and Services Tax (GST) liabilities due to users circumventing tax declaration.

Govt Assessing 18% GST Proposal on Bitcoin Transactions

The government of India is assessing a proposal to impose 18% goods and services tax (GST) on bitcoin transactions, estimated to be around Rs 40,000 crore annually.

The Central Economic Intelligence Bureau (CEIB), an arm of the finance ministry, has put forward the proposal to the Central Board of Indirect Taxes & Customs (CBIC), suggesting that the government could potentially receive Rs 7,200 crore annually on bitcoins trading in the country. 

The CEIB has conducted a study on levying of GST on cryptocurrencies. Indian intelligence agency CEIB is responsible for gathering information and monitoring the economic and financial sectors for economic offences and warfare.

According to finance ministry sources, CEIB has suggested that bitcoins can be categorized under ‘intangible assets’ class and a GST levy could be imposed on all transactions. The board has suggested that the cryptocurrency can be treated as current assets and GST charged on the margins made in its trading.

The unregulated cryptocurrency exchanges and its trading has posed a bigger challenge before the government, particularly after the Supreme Court lifted a two-year ban imposed by the RBI on banks and financial institutions to deal with digital currencies. Currently, there is no regulator for cryptocurrency and hence there is also fear of it being used for big-time money laundering and undermining of legitimate currencies.

On December 11, the ED arrested a cryptocurrency trader in Gujarat for his alleged involvement in money laundering on behalf of banned Chinese betting apps operating in the country.

Source

Govt Completely Scraps 18% GST on Indian Satellite Making Startups to Use ISRO Rockets

Earlier this month, in a bid to encourage start-ups making satellites to use ISRO's domestic launching services, GST Council has decided to exempt 18% GST levied on satellite launch services offered by the space agency ISRO and its commercial arm Antrix Corporation Ltd as well as New Space India Limited (NSIL).

In a 42nd meeting held on 5th of this month, GST Council recommended that 18% GST will be completely scrapped, said a notification announcement on Friday.

Prior to this announcement, an Indian satellite-maker must pay 18%t GST to launch satellites on ISRO’s rockets, whereas a foreign customer can do the same without paying any GST.

In a notification dated 16 October, that seeks to amend Notification No. 12/2017- Central Tax (Rate) the 28th June, 2017 which pertains to Exemptions on supply of services under CGST Act, serial number 19C is added in order to exempt Satellite launch services supplied by Indian Space Research Organization, Antrix Corporation Limited or New Space India Limited.

The startups that are manufacturing satellites will be exempted from GST now when they choose Indian launch vehicle.

The announcement also proved to be an incentive to those Satellite making startups that were earlier forced to opt for foreign rockets for their initial satellite launch. Notably, earlier the launch services provided to foreign companies was ironically qualify as “export of service” which are exempt from the levy of GST. So it is cheaper for an Indian-origin company or Stat-up ventures to register their business in a foreign country and launch using ISRO rockets as a foreign customer.

In 2018, the Falcon 9 rocket of Elon Musk-promoted firm SpaceX took off its space flight and carried 70 satellites from 16 countries including one from India called 'ExceedSAT 1', which became the first ever private satellite from India.

GST hike on mobile phones will be detrimental for local manufacturing: ICEA

Hiking GST on mobile phones will be detrimental for consumer sentiment and in turn impact local manufacturing, industry body ICEA said.

In a letter to the finance ministry, the mobile handsets and electronics industry body said the sector is already under deep stress because of disruption in the supply chain due to the coronavirus outbreak.

It is a very inappropriate time to consider hike in GST rate of mobile phones from the current level of 12 per cent, it added.

"We understand that one of the logic being put forward is that the industry is suffering from inverted GST! Instead of correcting this wrong by rationalising GST on parts, components and inputs of mobile phones, a bizarre move to increase GST on the final product is now being considered," ICEA Chairman Pankaj Mohindroo said in the letter to Finance Minister Nirmala Sitharaman.

The letter, dated March 12, said the proposal to hike GST on mobile phones is not in the interest of the consumers, trade, industry or the nation.

"Mobile Phones is the only sector that has performed under flagship 'Make In India' program of the government. Hence, any change in the GST will be detrimental to the consumer sentiment which in turn can impact domestic manufacturing activity," Mohindroo said.

According to ICEA, 31-32 crore Indians who buy phones in the country will be impacted by the move.

"The Hon'ble Prime Minister has envisioned India to become the world's no.1 manufacturing destination for the mobile phones. And it may be difficult to achieve this vision unless the GST rate on handsets is retained at the current level of 12 per cent," Mohindroo said. PTI PRS

Top 10 GST Softwares on our Radar

Are manual filings bothering you? Switch to the smarter way with an online GST (Goods & Services Tax) software. Save your research time and go through our top 10.

1. 
   
   
   
   1. HostBooks
      With alluring features such as seamless financial management, cloud support, effortless GST billing and return filing, Hostbooks tops our list. The interface is user-friendly, the E-way bill generation is simple. HostBooks offers a comprehensive cloud-based platform for all accounting and compliance functions such as GST, E-Way Bill, TDS, Tax, and Point-of-Sale. The NSDL listed software is a trusted brand with global associates. With the perfect blend of accounting and cutting-edge technology, it aims at minimizing the compliance time for the SMEs with a seamless user experience. HostBooks software boosts up user productivity, promises an incredible and hassle-free user experience, and cuts down the operation time and cost.
   
   
   2. Tally ERP 9
      
      One of India’s most trusted software, Tally has been in the market for a long time helping people manage their compliances. The software is a trusted one used by over a million businesses across India. Tally ERP keeps in mind all the complexities, expectations that your business might require, so it is designed in a flexible manner.We are sure you are looking for a simple software which is able to handle all your complex work such as accounting, compliance. Tally is user friendly and the installation is real quick and easy. While you focus on your business, let Tally manage your account.
   
   
   3. ClearTax
      
      In today’s world of digitalization, a cloud based software is a big hit. Cleartax GST eliminates your fear of losing your precious data as it creates a backup on its cloud. If you lose internet connectivity, there is no way you can lose your vital documents. With error-free invoicing & return filing in minutes, the user requires no extra time or efforts to update the software. The installation process is simple and easy with no desktop requirement.
   
   
   4. QuickbooksQuickbooks is a known name in India.With a super user friendly interface, the software allows you to test it for a month, absolutely free of cost! The user-friendly interface helps you in creating GST invoices effortlessly. In addition to this, you can manage your finances from anywhere and can monitor input tax credit on your purchases and save money.
   
   
   5. Gen GST Software
      
      Built-in secured JAVA language, Gen GST software is a trusted GST e-filing and billing software.With impressive features like auto error detection, e-payment of taxes and flexibility of importing data for returns from billing makes accounts life easier. The software is reliable & fast. Additionally, working capabilities are also available in the SaaS version.
   
   
   6. ProfitBooks
      
      Launched in 2012, ProfitBooks is now a widely used online GST compliant accounting software in India. The interface is quite simple and the software lets you create great-looking professionals invoices and receive payments from your customers in a short span of time. The software provides GST invoicing facility with payment gateways integration. With the help of the software, you can track overdue invoices and receivables and identify customers who owe you and connect with them.
   
   
   7. Busy GST
      
      BUSY is widely known as an integrated business accounting software for micro, small and medium businesses. The software claims to have over 2,00,000 installations (over 6 Lakh Users) worldwide. The company provides a free trial to users and is now one of the leading accounting software in India. With features such as Financial Accounting, Inventory Management, etc. Busy offers a range of accounting software to cater to the needs of different business segments.
   
   
   8. Zoho Books
      
      Zoho Books is online accounting software that manages your finances, keeps you GST compliant, automates business workflows, and helps you work collectively across departments. The software offers 14 days free of cost trial to its users. Zoho Books is a popular GST-ready accounting software. It lets you send invoices, reconcile bank transactions, track inventory, generate reports. All these help users in filing GST returns effortlessly.
   
   
   9. Taxxman’s One Solution
      
      Taxmann’s One Solution software is a complete GST Software with all ASP-GSP Services. An easy to use software with excellent support staff, it is one of the best end-to-end GST compliance software for Invoicing, Reconciliation and Returns Filing software available at present in India. Taxmann is an ISO 270001 certified company.
   
   
   10. GEN-GST
       
       GEN- GST has a very user-friendly interface and is a Good Tax Preparation Software. The software needs no internet to operate. The software is handy for the accountants who need a tool to prepare GST returns for their clients without accounting. It can extract data from any accounting software for filing purposes.
   
   
   
   

Seeking unprofessional help can ruin your filings, you need to be careful while choosing one. Choose a secure, cloud-based reliable software to manage your filings easily.

$5.75 Mn Tax Scam Unearthed at Beverage Firm Co-owned by SAIF Partners

Vadodara, Gujarat-based Manpasand Beverages Ltd (MBL), known for MangoSip - a mango drink brand, and OXY Sip - a packaged drinking water, is suddenly in a centre of controversy as Central GST Commissionerate of Vadodara,Gujarat has unearthed a ₹ 40 crore (~ US$5.75 Mn ) goods and services tax (GST) scam in the company, which is backed by private equity firm SAIF Partners, which hold 25% stake in MBL.

According to Business Standard, citing CGST commissionerate sources, MBL allegedly created and showed sales and purchases across more than 30 fake units.

In a latest, MBL founder Dhirendra Singh, his brother Hashvardhan Singh, Managing Director Abhishek Singh and chief financial officer Paresh Thakkar were arrested after a raid on May 23 by the Central GST Commissionerate Vadodara for GST fraud amounting to ₹40 crore.

It was in 2011, when the private equity firm SAIF Partners reportedly picked up a 25 percent stake in MBL for Rs 45-50 crore, with an earnings multiple of 30.

The report further said that ever since Deloitte resigned as auditor for Manpasand Beverages has been in controversy, which is then eventually came out open when top management executives of MBL were arrested cementing the speculations.

Established in 1998, by current Chairman and Managing Director Dhirendra Singh, MBL boasted its presence in rural and tier-2 and 3 markets when its multinational competitors were ruling the metros and top cities.

MBL counts celebrities as its brands' endorsement adverts. While Bollywood actor Sunny Deol is brand endorser of 'MangoSip', actress Tapsi Pannu endorses its 'MangoSip' brand. MBL's ready-to-drink oral rehydration salts (ORS) sports drink is endorsed by boxing champ Mary Kom.



By 2018, the company was congratulating itself on reaching out to these markets with a distribution strength of 600,000 outlets.

"MBL was also on its way to setting up its fourth plant in the country. Its manufacturing plants in Vadodara, Varanasi and Sri City are either operational or under construction," said the report.

Usually the cases one comes across show companies running real units, but acquiring fake invoices here and there to claim input tax credit (ITC). But in case of MBL, it has been found that the company set up several fake units and across the country at that. Real purchase and sale transactions were then shown with values inflating with each transaction in order to claim a cumulatively large sum of input tax credit," a source said.

The company allegedly showed inter-unit transactions worth over Rs 300 crore wherein ITC would come up to Rs 40 crore. Government sources said that these transactions were found to have taken place in 2018-19.

In this case, MBL allegedly showed inter-unit transactions worth Rs 300 crore, which led to an accumulation of input tax credit (ITC) of Rs 40 crore. According to CGST commissionerate sources, the transactions took place on several occasions in 2018-19, beginning three-four months ago.

Independent chartered accountants and corporate law experts who have followed the case said the circular trading involved one of the real units showing a sales transaction to a fake unit, which is then followed by a string of similar transactions, adding a slight margin at each stage and eventually landing up as a purchase transaction by a real unit of MBL.

“The real unit which shows purchase in the end can now claim tax credit on the inflated value at each stage. Mostly, it is even difficult for auditors to find out such a long trail of 30 fake units because there are no RoC (Registrar of Companies) records. Also, there is no law in the country that prohibits such kinds of circular trading. Only CGST intelligence can smell it when they follow the trail on their system and find that these are similar or even same transactions shown again and again,” said an independent corporate law expert.

For SAIF, which is investor in companies like Book My Show, MakeMyTrip, Paytm and FirstCry among others, MBL is not its first portfolio firm that came into controversy as earlier an another SAIF Partners-backed Infrastructure Leasing & Financial Services (IL&FS) came in to controversy for alleged fraud and causing wrongful loss to the troubled infrastructure lender.

Last month, a former vice chairman of IL&FS, Hari Sankaran, was arrested by Serious Fraud Investigation Office (SFIO). He is accused of granting loans to entities that were not credit-worthy or declared as non-performing accounts causing loss to the company and its creditors.

Coincidentally, IL&FS also had Deloitte as its auditor at that time and according to SFIO the initial probe revealed the existence of major lapses in Deloitte’s audit of IL&FS subsidiary.

5 Recently Announced GST Relief for Startups and Small and Medium Businesses

The Goods and Services Tax (GST) bill, which was first introduced in the 2006-07 Union Budget, and finally passed in the Parliament in August last year (2016) came into effect on July 1st this year. Since then, the bill has been a bone of contention and caused much more trouble to merchants and business owners rather than the relief that was being anticipated by the government.

Seeing the growing unhappiness over the bill, the Modi government has decided to bring in some piecemeal reliefs. In the latest GST council meeting held on October 6, the council decided on various relief for Startups and Small and Medium Businesses.

For the uninitiated, under GST, all the major taxes in India like excise duty, octroi, service tax, special additional duty and VAT will be subsumed into a single tax called GST.

5 of the major recommendations that have been made by the GST council at its 22nd meeting for SMEs were:

1) Ease In Return Filing And Payments For Startups

In order to facilitate the ease of payment and return filing for SMEs with annual aggregate turnover up to Rs 1.5 crores, the council has recommended that starting from the third quarter (October-December) of this financial year, such taxpayers shall be required to file quarterly returns in FORM GSTR-1,2 & 3 and pay taxes only on a quarterly basis.

Further, the registered buyers from such small taxpayers will also be able to avail ITC monthly. The due dates for filing the quarterly returns for such taxpayers will be made known soon. Meanwhile, all taxpayers will have to file FORM GSTR-3B monthly until December 2017. All taxpayers are also required to file FORM GSTR-1, 2 & 3 for the months of July, August and September 2017. Due dates for filing the returns for the month of July 2017 have already been announced. The due dates for the months of August and September 2017 will be announced soon.

2) GST To Be Paid On Advances Received From Customers Relaxed

During the meeting, it was uncovered that requirement to pay GST on advances received was proving to be quite a big headache for small dealers and manufacturers. So, in order to reduce their burden, the council decided that the taxpayers having annual aggregate turnover up to Rs 1.5 crores will not have to pay GST at the time of receipt of advances on account of supply of goods. They will required to pay GST on such supplies only when the supply of goods has been successfully made.

3) Reverse Charge On Inward Supply From Unregistered Taxpayers Has Been Suspended

The council meeting recommended that the reverse charge mechanism under Sub-section (4) of Section 9 of the CGST Act, 2017, and under Sub-section (4) of Section 5 of the IGST Act, 2017, will be suspended till March 31, 2018. It will be reviewed again by a committee of experts after the end of the intended period. Experts are optimistic that this move will have small businesses in reducing their compliance costs substantially.

4) Service Providers Making Interstate Supply Are Exempted Up to Rs 20 Lakhs From Registration Under the GST Bill

For the uninitiated, anyone who is making inter-state taxable supplies, except inter-state job worker, has to register, irrespective of their turnover. This particular rule was hampering the export sector the most. Although exports has been categorised as “zero-rateded” and hence 0% GST was applicable to it, but since exports were essentially “inter-state sales”, hence registration was mandatory for them.

Under the new recommendations, it has been decided that those service providers whose annual aggregate turnover is less than Rs 20 lakhs (Rs 10 lakhs in special category states except J & K) will be exempted from obtaining registration even if they are making inter-state taxable supplies of services. This particular recommendation is most likely to reduce the compliance cost of small service providers.

5) Composition Scheme Threshold Increased

According to new recommendations made by the GST council in its latest meeting, the composition scheme will be made available to taxpayers having an annual aggregate turnover of up to Rs 1 crore as compared to the current turnover threshold of Rs 75 lacs. The turnover threshold for Jammu & Kashmir and Uttarakhand will be Rs 1 crore. This threshold of turnover for special category states, except Jammu & Kashmir and Uttarakhand, will be increased to Rs 75 lakhs from Rs 50 lakhs.

This increase in the turnover threshold will allow a greater number of taxpayers to avail the benefit of easier compliance under the composition scheme. It is also expected to benefit the MSME sector greatly.

This development was first reported in YourStory.

5 Benefits And Drawbacks Of GST For Startups To Know

Finally the motto of ‘one country, one tax’ has become reality. The Friday midnight (June 30, 2017) was the revolutionary night for the Indian economy as Goods and Services Tax (GST) came into force at midnight, amid a historic midnight session in the Central Hall of Parliament. President Pranab Mukherjee, Prime Minister Narendra Modi, and Finance Minister Arun Jaitley addressed the gathering, before the President and the Prime Minister pressed a button to mark the launch of GST.

GST, on one hand, has created an ease of business for companies by bringing all state and central level levies and taxes under one roof on the other it has increased the compliance.

“GST will be a relief for Indian businesses given that we will be done with multiplicity of taxes, tax cascading, ambiguity in applicability of certain tax provisions pertaining to the industry along with introduction of robust technology framework to support automated time bound processes for tax collection, ITC utilisation, refund mechanism and dispute resolution. GST rules on exports may cause hardship for exporters, such as receipt of payment in convertible foreign exchange for classification under export, taxability of transactions between Indian head office and foreign branch office, and taxability of SEZ units with refund mechanism. Hopefully, over time, GST Council along with other concerned bodies will resolve the concerns of different stakeholders and offer a tax-friendly environment needed for continuous development of Indian economy,” says Nishank Goyal, CEO, Masters India.

Looking at the current structure and reporting requirements under GST, it would require e-commerce aggregators to hand hold their sellers and educate them on the compliance requirements.

“We are expecting a reduction of rates due to the implication of Anti-Profiteering law on the rates of products which is speculated to go upwards. Also, the tax on discounting will bring all the e-com players on the same ground where the companies will not be able to influence the customer by undue discounting of products. GST has definitely increased the compliance burden on the seller as well the e-com operator as the number of transactions are huge and tracking the minute details of each and every transaction within 10 days of month end will be a challenging task for the smaller player like us. Overall GST is definitely creating huge opportunity and is a boon to the industry but with unknown quantum collateral damage,” says Harsh Shah, Co-founder, Fynd.

We at IndianWeb2 have jotted down few benefits and drawbacks of GST for startups.

So, here are the must know benefits for startups of GST:

1. One Country, One Tax

Before GST come in force, one has to calculate different taxes which would make the process complex and burdensome. But with effect of GST, where all indirect taxes are subsumed into one single tax making tax calculations simple with less paperwork. And this will largely benefit the startups catering the software industry. Previously, VAT, service tax and excise, all the 3 or at least first two are applied on software products or service which will now reduce to single tax.

2.Ease In Doing Business With Single Registration

Earlier startups have to register again and again for different taxes or different states. But now with GST coming into effect, startups have to register only once on GST network and they can do business in any part of India without any hassle, making India a common market for startups and leading a way for expansion of their businesses.

3. Startups Eligible For Higher Threshold Limit

The growing businesses which are at nascent stage that is with an annual turnover of less than Rs 20 lakh are out of the tax net under the GST regime. Previously, threshold limit of service tax was 10 lakhs while the threshold limit of VAT varies from 5 lakhs to 20 lakhs in different states. But now, with increase in the threshold limit under the GST regime has bring a relif to budding startups. Startups are now eligible for higher threshold limit of 20 lakhs (10 lakhs in case of North East states). Not only this, startups whose annual turnover is less than 50 lakhs can opt for composition levy at a lower rate.

4. Lower Logistic Cost

GST will prove to be a much needed boon to e-commerce websites. As per the CRISIL report, GST will reduce logistics cost by 20% helping in reducing the cost of e-commerce startups. Reduction in logistics cost will also lead to more business for logistics companies.

Hassle free movement of goods in a common market will help startups in delivering goods early to customers since state border checks used to delay the movement of goods from one state to
another. This will also bring down the inventory and storage cost of startups.

5. Reduced compliance cost

With GST coming into effect, the overall compliance cost will be reduced as now there is only one tax and provisions related to act to comply with. GST network will also ensure transparency in calculation of taxes and input tax credit.

These are the few benefits startups will have due to GST coming into effect. But with every new policy coming into effect, there are few challenges and drawbacks associated with it.

So here are 5 must know drawbacks of GST for startups:

1.Not a Single Rate Of Taxation

India has opted for dual model of GST due to which we have C-GST and S-GST for intrastate transactions and I-GST for interstate transactions. Many critics argue that these three are nothing but the new names for Central excise/service tax, VAT and CST.

2. Cross set off of levy is not allowed

In proposed GST, the input credit of C-GST cannot be set off against S-GST and vice versa. While in present system set off of excise duty and service tax is allowed.

3. Increase Tax Rate

The main drawback of GST is for servicing startups. That is startups who provides services only have to pay service tax at the rate of 18%, an increase of 3% in tax rate for such startups. This is one major disadvantage of GST for the startups since majority of Indian startups are engaged in services sector. With introduction of GST, they have to increase prices to compensate such increase in tax since they can’t afford to absorb more losses.

4. Exclusion of Other Taxes

GST will not be the only indirect tax that a startup has to pay. Apart from GST, Startups will have to pay custom duty on imports since custom duty is kept out of preview of GST. Further electricity, real estate etc. have been excluded from GST which may lead to a mangled Indian version of GST.

5. Filing Return On Regular Interval

According to GST guidelines e-commerce startups have to file quarterly has well as monthly returns on GST network. Further they will also have to collect taxes from sales made on their portal .This will lead to increase in documentation cost for such startups.

Moglix To Empower $300 Bn Manufacturing Unit In India; Launches Green GST

Manufacturing sector is the least digitized compared to other sectors in India. Today, only 20% of manufacturing units are using digital in their supply chain management. With GST on the anvil, this number is expected to go up, as it will be mandatory for businesses of all sizes to file their indirect taxes online as per the new tax regime.

In making manufacturing units GST complaint, Green GST is also tackling the challenge of making vendors – mostly small manufacturers and traders – ready for the new regime.

Recently, B2B e-commerce marketplace, Moglix has launched ‘Green GST’ - a SAAS-based GST application solution for manufacturing units across India. Aimed at improving transparency and digitization in the manufacturing space, the tool will provide organisations with end-to-end Goods and Services Tax (GST) compliance support. The Green GST solution will be offered free of cost for a 30 day trial period to a user or companies with turnover below $4 million. Post the trial, if the user is willing to continue, they will have to bear a subsidized costs related to GST Suvidha Provider (GSP) transaction. The cost will be valid for up to 2400 invoices a year for a single user. The solution has been developed to make supply chains of manufacturing units GST complaint ahead of the law implementation on July 1st, 2017.

Commenting on the development, Rahul Garg, Founder and CEO, Moglix said, “Moglix’s Green GST is aligned with the government’s One Country, One Tax vision. Our solution will help India’s manufacturing units become fully GST compliant within their supply chain, in an effective and efficient manner. Through this solution, Moglix hopes to make its contribution to making India future-ready, and also help promote a clean, green and transparent business environment."

Green GST leverages Moglix’s expertise in digitizing supply chains, especially those of manufacturing units. It is a feature-rich solution for filing of GST, reconciliation of invoices, maintaining dashboards for multiple plants and warehouses, and managing taxes for various locations and cross-border trading.  Moglix will extend its existing commerce eco-system to consolidate small vendors, and create a compliant atmosphere for manufacturing units to operate in. This comes on the back of Moglix’s GST filing solution introduced in December 2016 to allow mid-to-large-sized manufacturing companies file and reconcile their GST payments with the Goods and Services Tax Network (GSTN).

“In these interesting times, Moglix stands at a unique confluence of expertise in technology and the manufacturing supply chain. We are excited about the tremendous opportunity for our customers to enhance their business footprint using our technology and analytics capabilities,” said Garg.

Founded in August 2015 by Rahul Garg who was previously the Head of Advertising Exchange at Google Asia,  Moglix is an B2B e-commerce marketplace that specializes in B2B procurement of industrial products such as MRO, fasteners, electrical, hardware, pneumatics, safety items and more. Startup has raised Series A and Seed funding of Rs38 Cr from venture capital firms like Accel Partners, Jungle Ventures, SeedPlus and Venture Highway. The company is backed by Ratan Tata, Chairman Emeritus, Tata Sons as an investor. Recently, SAP Labs identified Moglix as its startup tech partner for shaping B2B commerce in India.

Will GST's Complex System Hamper E-Commerce in India

Come July 1, 2017, all the major taxes in India like excise duty, octroi, service tax, special additional duty and VAT will be subsumed into a single tax called GST. But, even with the final deadline hardly a month away, there is still a lot of confusion around some aspects of its regulation and implementation. Further, how the tax will end up affecting various sectors of the Indian economy is also a question that a lot of people are currently seeking answers to. One of the sector in the spotlight in regards to this is the Indian e-commerce sector.

The Indian e-commerce market is acknowledged as a rapidly growing market and has been estimated to have crossed the two lakh crore rupees turnover mark in December last year.

Till now, 18 Indian states have officially passed the SGST bills in their state assemblies. This means, the landmark change in tax regime might be finally becoming a reality by July 1 after having missed its previous deadline.

In this article, Indianweb2 tries to find out if GST's complex system will hamper the e-commerce business in India.

Threshold And Compliance

First things first, it is important to note that the threshold limit set by the government for businesses for GST compliance leaves out e-commerce sellers. For the uninitiated, the threshold limit set by the government diktats that all the Indians businesses having a turnover of over Rs 20 lakh will have to compulsorily register themselves under the GST regime. However, e-commerce sellers will have to register themselves under the GST irrespective of their turnover figure being less than 20 lakhs.

Further, as far as GST compliance is concerned, it will come at a cost. While the cost might not be that huge for bigger sellers on the Indian e-commerce platforms, but smaller sellers are most likely to get big time affected by it.

Since there is still a lot of ambiguity around how the GST will finally get implemented, the fate of the Indian e-commerce sector majorly rests on how the various e-commerce platforms end up supporting their sellers in the whole transition process. For instance, shopClues has decided to help its sellers with filing return through its platforms and avail credits they are entitled to.

TCS

The debate around Tax collected at source (TCS) has been going on since as long as the topic of GST came into existence in India. This is because the actual impact that GST will have on small e-commerce sellers will only be calculated when the final rate of tax, or TCS, is known. If the TCS end up being on the higher end of the scale, them small sellers who earn thin margins will have to face major challenges in selling their goods on these e-commerce platforms as they will have to pay a TCS higher than the tax on margins earned. In order to make sure that such a situation never arises, the e-commerce industry has made several requests to the central government to try keeping the TCS rate as low as possible so that while every transaction gets counted, the small traders don't end being big losers.

GST Identification Number (GSTIN)

E-commerce players will have to register in every Indian state for GST. They will be required to register for their GST Identification Number in the state of origin of trade as well as the destination where the product will finally be delivered. This means, they will have to register through 29 states and seven union territories. While one understands that the purpose of the entire process is to ensure that the whole chain of transaction is recorded and can be accounted for, but going through 36 (29 states and 7 UTs) registration process will be extremely time consuming. Hence, a lot of e-commerce players are trying their best to convince the government to have a single-point registration instead of having one in every state.

However, some industry experts are hopeful that the government will soon clarify on this and e-commerce companies won't have to go through the trouble of registering in every state. According to them, since government's main objective behind the whole process is to ensure collection of tax from every seller on the platform and paying it to the state where the seller is located, this can be easily done from one state where the platform originally is, and doesn’t require registration in every state where the seller is operating.

According to a statement given by a company representative from ShopClues to the News Minute, the e-commerce company is currently meticulously working with all third-party logistics (3PL) partners to dish out details and implement a system that would help make its merchants and 3PL partners compliant from this supply-based invoice requirement. The company is hoping to release this system soon.

Overall, if one looks at the bigger picture, GST benefits for Indian e-commerce sector might end up outweighing its challenges. With GST coming into play, it will end up eliminating all the major hurdles currently being faced in inter-state delivery and include entry tax introduced on e-commerce shipments by some states. The industry is hopeful that the government will follow the route of simplified implementation of the rules that will further result in improving ease of doing business for sellers.

GST Finalized: Ola, Uber Rides To Be Cheaper, Here's How

Finally, the whole hullabaloo about GST is coming to an end, with the tax scheduled to come into action from July 1, 2017. One of the many benefits that the common man is expected to garner from the GST is a mild reduction in the monthly cab budget. Yes, starting July 1st, you might witness a small reduction in the daily cab fare that you were paying as the incidence of tax will come down to five per cent for bookings made on cab aggregators like Ola and Uber.

Under the current tax laws, a tax of six per cent is levied on the cab rides booked through cab aggregators. Starting 1st July, the GST will result in reducing this figure by one per cent and a commuter will have to shell out five per cent tax on the rides they book through cab aggregators. This is the rate closest in the various bands of GST rates of 5, 12, 18 and 28 per cent.

According to a recent report by business research firm RedSeer Consulting, despite supply side disruptions and regulatory challenges, online cab aggregators like Uber and Ola completed half a billion rides in the year 2016. This means the market saw 280 per cent growth compared to 2015, when the industry witnessed 130 million rides.

SoftBank-backed, home-grown company Ola and San Francisco-based Uber account for a majority of this growing market.

Industry experts are hopeful that the reduction in fares because of the tax reduction would further boost the already thriving industry. It has been witnessed that the ease of booking and the reasonableness of prices has contributed majorly to the growth of this market over the years.

Amit Jain, President of Uber India and South Asia is extremely excited about the move. In a statement to ndtv, he said, " by ensuring that the new rate structure is not inflationary, the government has demonstrated its pro-consumer, pro-business stance."

The Goods and Services Tax (GST) bill, which was first introduced in the 2006-07 Union Budget and was scheduled to be implemented in 2010-11, was finally passed in the Parliament in August last year (2016). From July 1, 2017 onwards, all major taxes in India like excise duty, octroi, service tax, special additional duty and VAT will be subsumed into a single tax called GST.

How GST will Impact Startups in India

The whole GST debate has been going on since forever. The Goods and Services Tax (GST) bill, which was first introduced in the 2006-07 Union Budget and was scheduled to be implemented in 2010-11, was finally passed in the Parliament in August last year (2016). While the government is now mulling over the list of over 5,000 goods that will be taxed under the upcoming GST, the Indian Startup Community has a mixed feeling about the whole bill and the impact it will have on their businesses.

While a majority of the startups believe that as and when the bill comes into action, it will help in reducing cross-border corruption between states, simplify the currently complicated taxation process, and let them claim the credit on taxes paid on expenses in their companies. On the other hand, Indian ecommerce biggies like Flipkart, Snapdeal and Amazon are worried about the rules related to tax collection at source, or TCS, which is a provision in the GST (Read Here).

From July 1, 2017 onwards, major taxes in India like excise duty, octroi, service tax, special additional duty and VAT will be subsumed into a single tax called GST.

The move might increase compliance in the short-term as sellers would have to file a return thrice in a month, compared to the current process which requires them to do this once in six months. According to experts, when the bill comes into action, sellers would have to report their monthly sales by the 10th of each month, purchases by the 15th and a consolidated statement by the 25th of each month.

Grocery retailing startups are particular happy with the government's GST Bill as the government has allowed 100 percent FDI in food retailing. These startups have a lot of service tax credit, and once the bill comes into play, this service tax credit will get converted into GST credit. As of today, they are not able to offset service tax credit against anything else. Hence, GST will give them a lot of tax advantage.

Logistics sector to be a huge Winner

The GST will result in the abolition of a lot of taxation bottlenecks at state borders and make the whole of India one single market. It will also help in reducing the currently prevalent price anomalies between different states in the country.

Taxation software startups are also going to see a boom in the business. Since many Indian startups are in the e-commerce business and their logistic costs goes up with 11 categories of taxes levied on the road transport sector, GST can help them in drastically reducing their logistic costs by as much as 20 per cent. A lot of online marketplaces have already started educating their sellers on GST compliance.

Indian startups currently operating in manufacturing sector have to follow a number of state regulations besides having to pay state taxes. In addition to this, many states have a threshold beyond which startups have to register for VAT, if a startup has a turnover of Rs 5 lakh. But, under the GST, the threshold is Rs 20 lakh.

Sellers and marketplaces have Mixed Feelings

While online sellers are joyous about GST as they will be able to offset total tax liability against tax paid on expenses such as office stationary etc., which was currently not possible.

However, marketplaces such as Amazon, Flipkart and Snapdeal have voiced their concerns over the 2 per cent tax collection TCS, stating that it should be sellers who should be paying this tax.


The GST bill is most likely to benefit e-commerce users as the movement of goods between states will become faster and cheaper.

How GST will Impact Startups in India

The whole GST debate has been going on since forever. The Goods and Services Tax (GST) bill, which was first introduced in the 2006-07 Union Budget and was scheduled to be implemented in 2010-11, was finally passed in the Parliament in August last year (2016). While the government is now mulling over the list of over 5,000 goods that will be taxed under the upcoming GST, the Indian Startup Community has a mixed feeling about the whole bill and the impact it will have on their businesses.

While a majority of the startups believe that as and when the bill comes into action, it will help in reducing cross-border corruption between states, simplify the currently complicated taxation process, and let them claim the credit on taxes paid on expenses in their companies. On the other hand, Indian ecommerce biggies like Flipkart, Snapdeal and Amazon are worried about the rules related to tax collection at source, or TCS, which is a provision in the GST (Read Here).

From July 1, 2017 onwards, major taxes in India like excise duty, octroi, service tax, special additional duty and VAT will be subsumed into a single tax called GST.

The move might increase compliance in the short-term as sellers would have to file a return thrice in a month, compared to the current process which requires them to do this once in six months. According to experts, when the bill comes into action, sellers would have to report their monthly sales by the 10th of each month, purchases by the 15th and a consolidated statement by the 25th of each month.

Grocery retailing startups are particular happy with the government's GST Bill as the government has allowed 100 percent FDI in food retailing. These startups have a lot of service tax credit, and once the bill comes into play, this service tax credit will get converted into GST credit. As of today, they are not able to offset service tax credit against anything else. Hence, GST will give them a lot of tax advantage.

Logistics sector to be a huge Winner

The GST will result in the abolition of a lot of taxation bottlenecks at state borders and make the whole of India one single market. It will also help in reducing the currently prevalent price anomalies between different states in the country.

Taxation software startups are also going to see a boom in the business. Since many Indian startups are in the e-commerce business and their logistic costs goes up with 11 categories of taxes levied on the road transport sector, GST can help them in drastically reducing their logistic costs by as much as 20 per cent. A lot of online marketplaces have already started educating their sellers on GST compliance.

Indian startups currently operating in manufacturing sector have to follow a number of state regulations besides having to pay state taxes. In addition to this, many states have a threshold beyond which startups have to register for VAT, if a startup has a turnover of Rs 5 lakh. But, under the GST, the threshold is Rs 20 lakh.

Sellers and marketplaces have Mixed Feelings

While online sellers are joyous about GST as they will be able to offset total tax liability against tax paid on expenses such as office stationary etc., which was currently not possible.

However, marketplaces such as Amazon, Flipkart and Snapdeal have voiced their concerns over the 2 per cent tax collection TCS, stating that it should be sellers who should be paying this tax.


The GST bill is most likely to benefit e-commerce users as the movement of goods between states will become faster and cheaper.

Amazon, Flipkart, Snapdeal Come Together Against Draft Model GST Law

In what could be seen as a deeply ironic move on the part of Indian ecommerce startups, founders and top officials of India's ecommerce biggies like Flipkart, Snapdeal and Amazon have come together and joined hands in a mission to get changes done in the draft model Goods and Services Tax (GST) law.

Their reasoning behind the move is that all of them are worried about the rules related to tax collection at source, or TCS, a provision in the GST.

If and when the TCS rule comes into action, all the ecommerce companies in the country would be required to collect and remit taxes on behalf of the sellers on its platform. Since almost each of these websites have thousands and thousands of merchants and sellers on their platforms, they argue, this would end up being an extremely cumbersome and time consuming activity for them. In addition to this, it would even discourage sellers to join their platforms, which would end up affecting their business. Hence, the ecommerce companies strongly believe that the GST bill in its existing form with the TCS clause has the potential of bringing the whole of country's e-commerce industry to stagnation.

Goods and Services Tax (GST) was first introduced in the 2006-07 Union Budget and was scheduled to be implemented in 2010-11. But, the bill was finally passed in the Parliament in August last year (2016).

Ironically, when the bill was passed, there was a sentiment of cheer and celebration in the startup industry with some even taking to Twitter to express their opinions on the bill.

Officials of these ecommerce biggies are contesting that a thorough impact analysis of this tax provision on the online marketplaces had not been carried out diligently by the government. And now, with the draft model GST law due to be finalised at the end of February, there's a sense of panic and commotion in the industry.

Flipkart's Sachin Bansal in a tweet dated 3rd Aug, 2016 wrote, "#GSTBill will not only unlock huge productivity but also create millions of formal sector jobs."

Resonating with his sentiments was Snapdeal's Kunal Bahl, who took to Twitter after the bill was passed in the parliament on 3rd Aug, 2016 and wrote, "Welcome passage of #GSTBill! Digital commerce removed geographical barriers, GST will remove tax barriers. One India means faster growth."

But they now seemed to have made a U-turn on their sentiments back then in August, 2016 and joined hands with SMEs, sellers and banks asking the government to do urgent amendments in the model GST law. They all are sure that if the law is implemented in its current form, it would do them more harm than good.

Let's see if the group succeeds in pressurising the government to make the amendments in the law. Whatever be the case, we will keep you updated.

Why Startups in India Should Be Ecstatic About GST Bill

The Goods and Services Tax (GST) likely to be passed in Rajya Sabha today has been a long time coming. Having been introduced in the 2006-07 Union Budget, it was to have been implemented in 2010-11. Given the work involved even once the bill is passed - rates need to be fixed, rules need to be framed, the Union and state governments must reach a consensus, infrastructure for registration and return filing needs to be in place - we can expect its implementation to be still some time away. In the meanwhile, however, let’s understand why young businesses should be very happy about the passing of the GST.

Impact on Young Businesses

For young businesses, the GST is ideal. If there’s anyone who could benefit from the time and money saved on compliance work, it’s startups.

Lower Taxes on Small Businesses:

Currently, VAT applies uniformly to businesses with a turnover greater than Rs. 5 lakh in most states. Operations with revenue of Rs. 10 lakh to Rs. 50 lakh can opt for the VAT Composition Scheme (which would lower the tax rate), but that has criteria on its own and isn’t suitable for everyone. With the GST, however, tax burdens will be heavily reduced for businesses with a turnover of Rs. 10 lakh to Rs. 50 lakh, and those with revenue of Rs. 10 lakh need not apply for GST at all.

Simpler Compliance, Easy Expansion:

To check Ease of Doing Business in any country, the main criterion is the number of steps involved in starting a business. Given that most Indian entrepreneurs need to register a company, get a service tax registration, a VAT registration in every state it operates from, and much else, India fairs poorly. The GST is a game-changer in this sense. It requires entrepreneurs to get just one license for their company and, once that’s done, it won’t matter just how many states you do business in, so long as you pay the tax. Business expansion will now be seamless.

One Registration, One Return:

Let’s take the example of a restaurant owner. Such an entrepreneur would need to apply for VAT Registration once his/her revenues reach Rs. 5 lakh, service tax at Rs. 10 lakh, pay octroi on goods entering the state at one rate, and entertainment tax if any live act is playing at the venue. This is too much to keep track of. With the GST, there will just be one registration, a common tax rate. Complete uniformity. For accounts departments, tax payment will be much simpler, as will return filing.

Inter-state Trade Made Simple:

Many entrepreneurs do not currently beyond state borders because of issues with taxation and clearance. There are needless fines and other nuisances. With the GST, all states in India will have the same tax rate and bring down logistical costs for many businesses.

Why GST is Important

A much-needed reform of India’s labyrinthine indirect tax system, the GST bill will have a radical impact on Indian businesses with regard to all taxation matters. The tax structure of products and services will change, taxes on products and services will be streamlined, the effort involved in compliance will reduce substantially and tax payment will be made more efficient.

One tax: The GST will consolidate Central Excise Duty, Service Tax, VAT, Central Sales Tax, Customs Duty, Central Surcharge & Cess, Octroi, Luxury Tax, Entertainment Tax, Purchase Tax and a few other indirect taxes. The GST will apply on all goods and services, barring alcohol. Even petrol and petroleum products will eventually be subject to it.

One decision-maker: Taxes such as VAT are currently decided by every state, making compliance complicated for companies with operations pan-India. With the GST, power to enact laws will only be with the Union. The centre will also decide the levy of taxes on inter-state supply of goods and services. As per the GST, a 1% origin-based tax will be earned by the state government from where the goods are being transferred.

Ease of Doing Business: Given its importance to the world economy, India has scared away many entrepreneurs with its painful compliance requirements. The GST will change this for Indian and foreign entrepreneurs looking to set-up shop in India.

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The above is an authored article by Hrishikesh Datar, CEO of Vakilsearch.com, India’s largest online facilitator of legal services and tax registrations.

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