WorldHRDiary.com Exclusive
The approval over the passing of the GST Bill by the Upper House of the Indian Parliament has created a lot of buzz among the business community as well as general public. This historic Goods & Services Tax (GST) bill will lead the Indian taxation system more structured and unified. The business community is Gung Ho about the impact of the bill which will create positive business environment in the economy.
The Start-up community is also reacting positively to the GST Bill. The present government has been giving a special focus for the start-ups and created many platforms for uplifting the face of start-up ecosystem in the country.
WorldHRDiary.com speaks to some of India's leading start-ups about their take on GST Bill.
Let us find out what they have to say:
Vipin Kumar Yadav, Founder & CEO, Couponhaat.in
Vipin Kumar Yadav, Founder & CEO, Couponhaat.in |
'Being India’s
leading e-commerce platform to provide the best coupons and deals for online
shoppers we welcome the historic Goods Services Tax (GST) bill which is
expected to boost the e-commerce industry by enabling seamless cross-border
transactions as it discourages tax evasion but subsumes all indirect levies.
However, e-commerce companies might face higher compliance burden to make sure
that they're not evading taxes but ‘One country, one tax’ would definitely pave
the way for ease of doing business as well as for transforming the Indian
e-commerce marketplace globally. This is really a historic occasion for the
Indian economy after the liberalization in 1991.'
K Ganesh, Serial Entrepreneur, Partner- GrowthStory and Promoter of sector leaders such as BigBasket, Bluestone, FreshMenu, Housejoy, Homelane, Portea
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K Ganesh, Serial Entrepreneur |
'The passage of the Goods and Services Tax (GST) Bill in the Rajya Sabha is a progressive measure as it can facilitate seamless movement of goods across inter-state borders enabling better efficiency and spurring growth of the (eCommerce) sector. However, like every regulation, it needs to be implemented correctly, and should not make lives of eCommerce players even more complicated by burdening them with more administrative hassles. For the consumer, the price points of many products should come down or remain at the current levels (depending on the GST rates) as there will be free flow of credits since the total indirect tax cost embedded in the price (of products) is likely to decrease.'
R. Narayan, Founder and CEO, Power2SME
R. Narayan, Founder and CEO, Power2SME |
“The GST tax reform can clearly be termed as a landmark and India's biggest tax reform since independence with the aim to streamline India’s fragmented tax system with a single levy. The passing of the GST bill is clearly good news for Indian businesses and will provide a huge fillip to the SME sector.
With a goal to create one single market, the GST bill will boost economic growth with some optimistic estimates suggesting an added 2 %. The GST regime will bring uniformity in the market creating a consolidated national-market-space. The distinction between goods and services will not apply, thereby, ensuring ease in tax compliances by ensuring one unified tax levy. This will also help SMEs avail the complete tax incentives paid on procurement of all input goods as well as services from various sources such as import, inter-state purchases, and local purchases and services like power, telephone etc. With the unified taxation system proposed, issues relating to regulatory uncertainty will be resolved and e-commerce shipment costs will reduce resulting in business growth for the organizations in this sector. In absence of multiple taxes such as; VAT, Excise, ST, CST, the SMEs will have a smoother and efficient inventory led model to operate, which will greatly enhance the ease of doing business. This tax system has been applied by most of the developed countries, as it helps protect businesses against multiple taxation.
The start-ups and SMEs have more reason to rejoice as this GST structure will provide higher exemptions to new business, businesses with turnover between Rs 10 and 50 lakh will be taxed at a lower rate. The GST will also ensure that there is reduction in logistics costs bringing great relief to manufacturing SME sector.”
Amit Grover, Co-founder and CEO - AHA Taxis
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Amit Grover, Co-founder and CEO - AHA Taxis |
Today, travel industry grapples with multiple levies like State Tax, Toll charges, MCD charges and various other local charges applied by states and center alike. We applaud Government's efforts to align all taxes under one roof for ease of handling across levels. GST has a potential to make India a single market and give a boost to the entire travel sector.
Asheer Kapoor, Managing Director, EPPS Infotech
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Asheer Kapoor, Managing Director, EPPS
Infotech
|
'We welcome the
Goods and Services Tax Bill (GST) as our country will now turn into one unified
market. With the implementation of GST, there will be numerous changes not only
in the taxation, but also in the consumption of the minutest item. This is one
of the biggest impacts on the IT structure in an organization both in terms of
time & effort involved wherein they will have to train their employees,
rework on their invoices and work in compliance with the new regulation.
Companies across industries will now be on the lookout for an integrated ERP
system that will support all their business requirements under GST regime. ERP
vendors that offer a seamless transition to organizations in upgrading their
existing system with GST will have a competitive edge in the market.
Also, as part of
our endeavor we have initiated a discussion with the Goods and Services Tax
Network (GSTN) to become a GST Suvidha provider and shall ensure that the GST
returns are filed through EPPS.'
Arjunpreet Singh Sahni, Executive Director,
Solitairian Group
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Arjunpreet Singh Sahni, Executive Director, Solitairian Group
|
“By replacing a
large number of indirect taxes by a single indirect tax regime across the
country, Goods and Services Tax (GST) is all set to bring economic revolution
in India by providing greater relief to the industries from the complex tax
system and so the approval of GST Bill in Rajya Sabha is undoubtedly a step
towards greater progress and growth that will surely lead to a considerable
increase in the GDP of the country. Going forward, with the introduction of the
new law, businesses will be motivated by the uniform tax structure. Among other
industries, the real estate sector will also be immensely benefitted by the upcoming
Act which will enable the real estate companies to do hassle free business
across the country on the back of uniform indirect tax throughout the country
on various construction materials including the steel and cement, costs of
which become major deciding factor while finalizing the price of the finished
products. However, it will largely depend on the final rate of GST that what
actual benefits of the reduced tax burden may be passed on to the property
buyers. The GST would have been more homebuyers' friendly if stamp duty had
also been subsumed into it. Still, in a nutshell, GST is here to transform the
growth prospects of the real estate sector by bringing more transparency and
the long prevailing gloom of slow demand is just a matter of few days.”
Nikhilesh Tiwari, Co-founder, Helical Insight,
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Nikhilesh Tiwari, Co-founder, Helical Insight |
'In my views, GST Bill which is touted as the biggest tax reformation in India is definitely beneficial for many but at the same time is disadvantageous for many sectors. Regardless of high expectations of people for GST, the implementations will be a grueling task for the government. It has its drawback which needs to be addressed. There are few things which are definitely a pain point for any startups like in the past service tax has increased from 12.36% to 14 and then 14.5 and finally now 15, which has put an adverse effect on the end-customers who had to bear the burden of increased costs. That's why they have to adapt cost cutting measures and restricting their outsourcing work. Now with the further increase in taxes will create even bigger problem in terms of business. Its true that a single tax structure will simplify the procedures, which are vary complicated in India, but at the same time any increase in taxes will impact startups in getting new businesses. Not to forget that indirect tax will increase to 18% which will result in lesser business since clients will have to shell out more money. Though I am not totally against it, but I don't think it will help either and the cost of many services will go up only.'
Betrand Yella, Managing Director, IBEE Hosting
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Betrand Yella, Managing Director, IBEE Hosting |
"GST Bill
is definitely one of the biggest tax reforms in India and is expected to change
the face of business in India. It is creating a common market place for all sectors
in India. There are few sectors which will be highly benefited but there are
sectors which will suffer as well, specially unorganized sectors. For IT sector
it is neutral as at one hand it will simply the procedures, reduces the multiple
taxing structures and hence help in delivering our services to across India
with same billing. Whereas on other hand
it will increases the expenditures for us as we work on single contract for all
centers but now with every centre there will be separate billing procedure to
be followed, so need lots of documentations, manpower etc. So overall its a
good move but will take time to get adapted in India Market."
Kulpreet Kaur, Co-founder, Shop PirateCoupons
Kulpreet Kaur, Co-founder, Shop PirateCoupons |
Finally the long
awaited GST Bill has been passed in Rajya Sabha. Though it has to clear many
more hurdles but it is definitely a great move by the government. For eCommerce
sector, there are lots of opportunities and the best part is that now it will
simplify the complicated tax structure in India. It will minimize the cascading
effect of taxation issues. State to state taxing system used to effect the end
users who used to end up paying more for any products. But now there will be
transparency in the costs. The only issue will be the increase in the
documentations work and administration costs, but i am sure eCommerce players
will easily cope up with the same.
Arjun Pratap, Founder and CEO, EdGE
Networks
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Arjun Pratap, Founder and CEO, EdGE Networks |
'Introduction of
the GST will significantly boost markets in India. Elimination of multiple
taxes, higher exemptions to new businesses will give a big thrust to the ‘Make
in India’ campaign creating more entrepreneurs in the country.'
Navneet Malhotra, Co-founder and Chief of
Alliances, Renomania.com
Navneet Malhotra, Co-founder and Chief of Alliances, Renomania.com |
'The GST
Bill is welcomed and a much awaited development. What I am concerned about is
what if GSF leads to a higher tax incidence for the start-ups in the service
sector. Right now we are paying 15% service tax and if the GST is higher, it
will add a fresh burden, especially to young start-ups. I would urge the government
to be mindful of that.'
Vishwavijay Singh, Co-Founder, Salebhai.com
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Vishwavijay Singh, Co-Founder, Salebhai.com |
'The existing
indirect tax laws including VAT/CST, excise, and service taxes have not been
able to accommodate the evolving e-commerce marketplace business model. The
sector faces a tough time categorising offerings into goods or services to
charge VAT/CST or service tax. It also has to grapple with problems related to
permits and statutory forms for inter-state movement of goods. Few state
governments have come up with additional taxes for e-commerce, which is
burdening both customers and companies. There is basically a lack of clarity on
e-commerce transactions under existing tax legislations. Once the GST Bill is
passed, there will be a national-level GST which will be easy to follow. We are
eagerly looking forward to it to tide over the current problems.'
Shrutam Vijay Desai, Co-Founder of
OnlyMobile by Bhatia's
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Shrutam Vijay Desai, Co-Founder of OnlyMobile by Bhatia's |
'Implementation
of GST is one of the biggest reforms what government is trying to bring in
today. This will definitely help all stake holders of our nation to realize
more transparency and more trade friendly environment will be there. GST is
particular very important for E-Commerce players as the expansion will become
easier for them as now they will not require to struggle with different taxation
in different states. However, since we are moving into multi-layered GST
structure – it is very important for the government to ensure near to perfect
implementation and all guidelines should be introduced before going live. I
also anticipate that many stand-alone or geographically restricted retailers
will kick in their expansion plans and particularly more active with their
e-commerce strategies. GST will provide wings to many business ideas to fly. As
far as mobile industry is concerned, I am expecting Online Exclusive models
prices to go up as they are operating via low VAT areas right now but removal
of Octroi, LGBT etc. should help many handset companies to improve the bottom
line – which is much needed relief. In indirect way, GST will arrest the
predatory pricing of E-Commerce market places. However, Central Government and
State Government both should ensure that they do not impose entry tax like
duties either on E-Commerce or Mobile Phones – such addition will kill the
purpose of this fastest growing industry. It’s great to see that finally State
Governments have extended their co-operation to Central Government towards
making our country more open and more friendly for trade activities.'
Sakshi Vij, Founder & CEO,
Mylescars.com
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Sakshi Vij, Founder & CEO, Mylescars.com |
"The GST
has been long awaited by the Indian companies especially companies like us who
are young and trying to makes customer focussed products. It is particularly
important that the GST comes into play soon because it simplifies the taxation
system.
Since we are
part of the services sector, we also await announcements on the tax rate that
will be applicable on services under the GST. We are hoping that the singular
tax will also reduce the burden of taxation on services like ours."
Founder, TripXOXO, Heena J Akhtar
![]() |
Founder, TripXOXO, Heena J Akhtar |
'GST will have a
long term benefit for the travel industry by simplifying compliance procedures
and reducing multiple taxes. However, the impact on costs is not clear as yet,
because it is not evident whether input credits will be available, and may
result in higher costs.'
Gaurav Jain, Company Secretary and Founder, Lexcomply.com
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Gaurav Jain, Company Secretary and Founder Lexcomply.com |
“GST is an
effective step to be at par with global practices provided its rate and
associated compliance are kept reasonable. The system will change from the
current production-based taxation to being consumption-based. Along with
bringing about a semblance of uniformity in taxes across states, this is
expected to increase efficiency and compliance in the system.
Dhiraj Agarwal, Co-Founder, Campus Sutra
![]() |
Dhiraj Agarwal, Co-Founder, Campus Sutra |
'From the point
of e-commerce there are two points in which we are awaiting clarity. First
being mechanics of GST across each state as online orders are not location
dependent. Secondly, as a fashion e- commerce player we are eagerly waiting to
see whether apparel continues to be in the necessity category and hence
attracts a lower GST than the standard rate.'
Bhushan Karn, Co-founder, Express Bike
Works
![]() |
Bhushan Karn, Co-founder, Express Bike Works |
'GST is a
massive boost towards indirect taxation, especially for start-ups in
manufacturing sector. Currently, our sector pays 25% indirect taxes which shall
reduce to 18-20% with the implementation of GST. While, it needs to be seen
what the ground reality is, and how simplified does it get to do business.
Overall, as all signs point towards a positive direction, we are pretty
confident that this government is committed to make this reform count.'
![]() |
Alok Agarwal, Co-founder and Business Head, Teesort |
'Clearance
of GST bill after 10 years is a much awaited and a progressive move by the
Parliament. It’s definitely a feel good factor since it’s been hanging out for
a long time. We at Teesort are happy to see that there is a common consensus
emerging in the parliament.
Introduction of
GST will immensely support the creation a single unified market across India
which will help in building robust supply chain and logistics network for
E-commerce sector. It will also boost the make in India campaign thereby
leading to more employment opportunities & will attract more FDI investment
in country.
That said, the
real value will come in when GST is eventually put into effect which may take a
couple of months.'
Ginny Kohli, Founder and CEO, Wedwise
Ginny Kohli, Founder and CEO, Wedwise |
‘GST move in this age of startups is a vital move. Any change in the Tax structure affects all business from top to bottom. For startups it's no different. The positive outcome being that startups will not have to deal with various complexities of different tax structures Levied at different stages with GST. Therefore making businesses more tax compliant. However, for struggling or unstable startups, the change in taxes can burden them financially. New reforms, new structures, new policies bring costs with which might not be great news for unstable startups.’
Yuvraj Aman Singh, Founder and CEO, Rocking Deals
![]() |
Yuvraj Aman Singh, Founder and CEO, Rocking Deals |
‘It’s a good sign as the prices would be uniform for the whole country instead of the tax havens from where most of the e-commerce players operate.’
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