If the global business statistics and reports of the last five years are to be believed then India, no doubt is holding a prominent position in the international IT market. The nation is considered as a tempting destination to conduct IT and web related business for almost all the global IT giants. Apart from international IT firms, the bright presence of many renowned domestic software and web service providers are boosting up the enthusiasm of the future entrepreneurs who are willing to make a mark through their innovations and business skills.Deepanjan Goswami
Encouraging this positive enthusiasm of young India, the Govt. of India have introduced some very influential policies and initiatives like "Make in India", "Start-up India" to extend support to the budding software entrepreneurs.
According to the World Bank's report of "Ease of Doing Business", India has made a significant plunge from its 140th rank to a satisfactory position of 100 in the year 2018. This progress in "Ease of Doing Business" ranking has made India a prospective nation to the foreign as well as domestic companies to launch their own start-ups and initiatives.
Offering Web development and designing service is one of the most lucrative options for most Indian entrepreneurs for investment. Software professionals or technically sound people have been noticed to invest in web development and designing services.
Considering India's position as the major outsourcing nation, in addition, with the initiatives of the present administration has triggered the emergence of many new web development companies in India which not only accomplishes domestic projects but equally offer services to various international clients. To develop India into a knowledge and technology-driven society the administration is re-designing the existing laws to offer a supportive and simple business environment to the entrepreneurs.
The implementation of GST (Goods and Service Tax) by the Indian Government on June 30, 2017, to offer the citizens a 'One country one tax' system is predicted to have a positive impact on the budding entrepreneurs of India. Let's take a glance below on how GST will ease the process of conducting the smooth flow of business in India.
1. Before GST implementation, one has to go through a complex process of calculating different taxes. Earlier VAT, service tax, and excise were applied to software services which have now reduced to one single tax with the introduction of GST.
2. With GST coming into effect start-up now have to register only once on GST network and can operate their business in any part of the country without any hassle or tension. The complexities of paying different taxes for different states are predicted to be abolished.
3. Start-up whose annual turnover is less than 20 lakh is exempted from paying taxes under GST bill. Not only this start-up can choose also for composition levy at a lower rate whose annual turnover is less than 50 lakh.
4. For start-up e-commerce websites and logistics companies hassle free delivery of goods and services to the customer is an important factor behind building a reputation, and GST will reduce the logistics cost by 20% thus reducing the cost of e-commerce websites.
1. Most of the Indian start-ups are involved in the service sector and with the introduction of GST, they now have to pay 18% of service tax as a result of which these start-ups have to increase the prices for their services to compensate such service tax.
2. For start-up e-commerce websites, the new GST guidelines suggest filing the quarterly and monthly return on GST which will lead to increase in documentation cost for these budding companies.
The introduction of various new government policies and changes in economic reforms are aimed to simplify the process of doing business for the young entrepreneurs in India that will not only contribute to the nation’s economy but will also encourage the foreign investors to consider India as a prospective nation for launching and conducting new business in a hassle free way.