7 Years Of GST Today: GST Exemption For Start-Ups And Small Businesses
New Delhi:First implemented on July 1, 2017, the Goods and Services Tax (GST) is seven years old today. GST is a single, integrated tax system combining several levies imposed by the central and state governments. Customers are required to pay the GST tax, which is levied on the final product pricing. The seller sends the government the collected tax, split into CGST and SGST.
The goal of implementing GST is to make doing business easier for various entities, including modern businesses. GST effectively reduces compliance burdens while encouraging the incorporation of modern enterprises into the formal taxation structure by unifying the tax structure into a single regime.
GST exemption for small businesses and startups
Startups whose annual sales fall below the threshold of Rs. 40 lakhs for goods and Rs. 20 lakhs for services, or if the startup is involved in the supply of exempt items or services, are not subject to GST.
