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1. GST for Entrepreneurs: Finding Pattern in Chaos
The announcement and subsequent roll out of GST (Goods and Services Tax) was a landmark
reform for businesses and consumers alike. Though GST reforms have impacted the tax slab
rates for different commodities and services for consumers, it is businesses who will stand to
gain the most benefits from the changes going forward.
Entrepreneurs as a class of businesspeople have long been neglected by the government and
policy makers for long despite the fact that India is home to over 4000 startups.
While the GST makes no explicit provisions for entrepreneurs in general or female
entrepreneurs in specific - what it does instead is, introduce provisions that uncomplicate the life
of the humble entrepreneur leaving her to focus on the business instead.
So how does GST simplify matters?
Firstly, it helps with an easier set - up. Earlier, new businesses needed to have a VAT
registration from the sales tax department to conduct operations. Businesses operating or
selling out of many States had to face a lot of issues regarding the different procedures and fees
in each state. The centralised registration process of GST makes starting a business and
expanding in different States much simpler.
Secondly, simplification of tax processes. Female entrepreneurs, especially those who run small
scale businesses or service outfits often lack taxation know - how. GST simplifies the indirect
tax regime to a great extent. GST integrates all the processes, making tax payment simpler
while taking away the problem of Double Taxation (as a good moves up along the supply chain
the next business in line has to pay tax on the total of price and tax, GST ensures that after the
final product has been sold to the end consumer, the businesses that form part of the supply
chain, get an input tax credit equal to the amount they paid as tax on the tax).
Thirdly, businesses under the current regime with a turnover of more than Rs five lakh had to
get VAT registration and pay up VAT. Most early stage startups fall in this bracket of revenue
and had to earlier start coughing up VAT on threadbare revenue while struggling to break even.
Under GST, this limit increases to 20 lakh and at the same time the burden of tax for revenue
between 20 to 50 lakh is reduced. Companies below 20 lakh need not register or pay tax,
unless they wish to avail benefit of input tax credit listed in the second point above.
A large number of female entrepreneurs also work in the food business - a business with low
barriers to entry. However, many women are not able to sustain their operations for long due to
the nature of tax on restaurants - both sales and service tax being applicable. However, with the
introduction of GST, the double incidences of tax have now been unified into one. Such
entrepreneurs can now calculate tax on the total.

2. Besides these three crucial simplifiers in the taxation structure, ​GST will help new
entrepreneurs scale much faster than before​.
A large number of businesses faced logical delays at inter state check posts due to octroi and
other state duties that had to be borne. Additionally, this left businesses open to extortion for
bribes in return for timely delivery of goods to clients.
A manufacturing entrepreneur will find her life much more simplified with easier interstate
movement, removal of checkpost taxes and bring down the need for inventory sharply due to
easier rotation of stock.
The benefits to logistics and supply chain companies are enormous.
GST also differs from indirect taxation regime in its day to day execution:
The transparency of tax administration under GST has most of the compliances including
taxpayer registration, return submission, tax payment and refund claims will be online through
GSTN portal only. This will help entrepreneurs to focus on their business rather than being
worried about tax compliances.
There is also a simplified “Composition levy” mechanism where the tax levied on intra state
supplies businesses like small traders, manufacturers and restaurants have the option to pay
reduced rates with simple filing mechanisms.
GST also helps entrepreneur with a simplified filing structure assisted by technology.
For most entrepreneurs, for whom tax management was synonymous with chartered
accountants, there is further good news in the form of simplified filing. With GST compliances
have been made much streamlined than before. Such as, an entrepreneur can adhere to the
compliances herself under a “Self-Assessment’ model.
Much like personal tax filing, entrepreneurs can follow a simplified online tax filing process using
the GSTN online website, free of cost.
This also can be used offline, allowing entrepreneurs to compile their invoices and upload on
the GST portal as per their convenience. All the data is auto - populated and need not be
mandatorily filled in by the entrepreneur again.
In case all of this information, is giving you a headache, do not worry! There are computer
assisted videos at every threshold to guide you through the filing process when you actually sit
down to work.
Much like principles of design thinking used by entrepreneurs in making their customer
experiences more intuitive - the GST portal allows entrepreneurs to go through the entire
process intuitively to upload their data and file their returns.
GST allows pricing and competition to thrive. ​Due to the input tax credit being adjusted and
avoidance of double taxation, the end pricing for the consumer comes down benefiting the
entrepreneur. Competitiveness also increases as a consequence of removal of artificial barriers
like entry barriers and better management of logistical issues.

3. Another help is better cash flow management. ​More often than not, working capital is
blocked in taxes and refund claims choking the production and inventory of entrepreneurs and
smaller businesses (A majority of which are run by women or are family enterprises).
Due to a streamlined process of tax payment, refunds and credit management, entrepreneurs
need not worry about burgeoning overdrafts and repeat visits to the Bank anymore.
Helping entrepreneurs with an export focus. ​GST is a boon for any business that exports.
GST is paid on goods which are exported will be automatically refunded as per earlier drawback
claim guidelines. If you are exporting services like say software, both your inward and outward
are treated as zero rated. Exporters are given enough flexibility to export without tax and get
their credit refunded along with many, many other provisions that benefit the exporter.
GST can be an opportunity for brand - building. ​Yup! We all know that people are wary of
partnering with startups and entrepreneurs due to the perceived instability of operations. There
is a compliance rating system for GST in place much like your CRISIL rating. If your compliance
record is good, your rating increases thereby guiding prospective business partners, to assess
risk of engagement with you to be more favourable. GST compliance can help you achieve
improved volumes and margins in business.
Will GST make socially navigating among business stakeholders easier?
Younger entrepreneurs often felt at sea with tax regimes that old hands had got comfortable
with. With the introduction of GST, everyone is a beginner and stands to both, learn and gain.
It has always been harder for women entrepreneurs to negotiate among businesses, as it is
generally not considered women’s work to partake in negotiation of bills, and dealing with
middlemen and suppliers. Hence, it is a given that women entrepreneurs will benefit from the
digitization and organization of operational processes that surround the tax problem for a small
business.
Women entrepreneurs are admirable for their persistence in navigating the challenging waters
of business in India. Managing business regulation and smooth operations is a deciding factor
between a successful and unsuccessful business.
It is hoped that GST, with its simplified and digitized structure will help small businesses adapt
to the tax regime. The ease in navigating the maze of taxation will enable small businesses to
contribute more to the economy, especially women entrepreneurs who have multiple social
pressures to deal with as well.