Good news for startups in India! Soon, all requirements to be completed in just one hour
Soon, start-ups may be able to complete GST filing, tax returns and compliance requirements within one hour. This has been planned by the Commerce and Industry Ministry and is likely to be implemented by the new government that will be sworn-in on May 30.
Soon, start-ups may be able to complete GST filing, tax returns and compliance requirements within one hour. This has been planned by the Commerce and Industry Ministry and is likely to be implemented by the new government that will be sworn-in on May 30. As part of measures to ease regulatory requirements for budding entrepreneurs, the ministry has proposed to cut down the compliance time significantly to just one hour per month for start-ups, news agency PTI reports. The said proposal is a part of 'Start-up India Vision 2024'.
The vision details have been fine-tuned by the Department for Promotion of Industry and Internal Trade (DPIIT) for the new government to promote the growth of budding entrepreneurs. Currently, start-ups have to deal with a number of compliance requirements every month including GST filings, tax returns and other local laws. These are not just time-consuming but also eat up the limited resources of startups.
"Monthly compliance for start-ups needs to be reduced to one hour per month so that they can concentrate on their core work," an official was quoted as saying. The reduction in compliance time give a boost of budding entrepreneurs and help create a stronger startup support ecosystem in the country.
Further improving 'Ease of Doing Business' in India is one of the declared goals of PM-elect Narendra Modi who will take oath as the Prime Minister for the second time on May 30. The new government will also work towards creating a single-window compliance and dispute resolution for MSMEs.
According to the report, the start-up vision document suggests 11 measures for easing the regulatory burden of start-ups. These include setting up of a regulatory sandbox or innovation hub to help fintech startups; tax incentives for investments in ventures of budding entrepreneurs; reduction in GST rates on alternative investment fund management services; and amendment in income tax laws pertaining to the sale of residential properties and carrying forward of losses.
The vision document has also proposed taxation on ESOPs as start-ups use ESOPs as an alternate provision instead of cash salary to attract talented employees away from larger corporations. It has also said that a specialist team within banks or a separate private agency to assess start-up loan applications are required to improve debt financing ecosystem for them.
The vision document aims to facilitate the setting up of 50,000 new start-ups in the country by 2024, creating 20 lakh direct and indirect employment opportunities.