7 Mistakes For Startups And MSMEs To Avoid Under The GST Regime

In this post, we will discuss the impact of GST on small businesses and startups with a turnover of up to ₹50 lakh. Now, the GST has a concept of “composition scheme”, where one has to pay tax @1 or 2% on the total turnover with fewer compliances. However, this system is full of technical traps, and believe me, even a small mistake can cost you lakhs of rupees in penalties.
Rupak De Chowdhuri / Reuters

Making GST Work: Walk Before You Run

At present, tax administration in India works poorly. We do not know how to build a capable and uncorrupt tax administration. In the absence of this State capacity, we should start with a GST design that imposes a low load upon tax administration. Only after this is proven to work at high levels of probity and operational efficiency can we consider the possibility of going up to higher levels of load.

The Rajya Sabha Is Not The Biggest Hurdle Facing The GST Bill

Even if it is assumed that the GST Bill is passed in the Monsoon Session of Parliament, there are numerous obstacles in its final implementation. Much of the focus is on the stubborn Opposition digging in its heels in the Upper House, but there are other practical problems too that have not yet become a part of the popular GST narrative.