Impact of GST on new businesses
This reform would harmonise the tax base and laws and administration procedures governing it. This, in turn, would minimise the inter-state competition which is detrimental to the nation’s development. The GST bill would ensure that the indirect taxes inclusive of the service tax and excise duty currently levied by the State and Centre would be on the basis of production and not on consumption of the goods or service. By this bill, the government has minimised the incentives
This is definitely a positive development for entrepreneurs planning to start a new business venture. For a business having two or more branches in different states, the process becomes more difficult and cumbersome due to the diversity in procedures and charges in each state. GST would bring about a centralised procedure and registration which would apply to all the states. This would not only make registration of new business easy but also make business expansion hassle-free and formalised.