How GST will Impact Start-ups and SMEs

Business How To’s

05 August 2017

How GST will Impact Start-ups and SMEs

  • Posted by Awfis Editorial

The long wait is finally over and the Goods and Services Tax (GST) bill has been implemented after around 17 years. Needless to say, GST is one of the biggest tax reforms in India after independence. With uniformity in taxation, not only the complexities of the taxation system have been tackled, but there is also increased transparency in the industry.

GST has replaced multiple indirect taxes and put an end to the cascading effect. Start-ups and SMEs significantly contribute to India’s GDP and exports. If sources are to be believed, currently we have nearly 30 million SMEs in the country, contributing around 45% of the industrial output and 40% of India’s export. With GST being implemented, start-ups and SMEs can capitalize on many opportunities that come their way and expand, while helping the nation grow.

The Positive Impact Of GST On Start-Ups And Smes

Starting A Business Just Got Easier:

Earlier there were multiple turnover slabs for the VAT registration and any multi-state business had to comply with various inter-state rules and pay their respective taxes. Under the new taxation scheme, new entrepreneurs won’t have to seek multiple registrations, a single registration will give them the authority to carry out business in any state of the country. Since the rules and tax rate is uniform across the country, businesses can register under GST and carry out multi-state businesses with ease.

Online Registration:

The entire GST process from registration to filing returns is digitized and simplified, making it easier for start-ups and SMEs to file their tax returns. And since there are no separate taxes such as VAT, Excise Duty, Service Tax, etc., start-ups won’t have to deploy specialists and experts for filing and paying taxes, making GST cost-effective.

Reduced Tax Burden:

The set threshold for registration has also been spiked from 5 lakhs to 20 lakhs (North East: 10 lakhs), this will encourage more start-ups, which will lead to more job opportunities. GST has also introduced a new scheme of lower taxes for small businesses that have a turnover of 20 to 50 lakhs, under the composition scheme. With this, the tax burden on emerging start-ups and SMEs has been relaxed.

No Distinction Between Goods And Services:

Under GST, all goods and services are treated as the same, which means, that start-ups and SMEs dealing in sales and services model of business will no longer have to distinguish and pay taxes separately. The computation of the tax liability will be made on the total amount. Moreover, GST will also reduce the cost of logistics by 20% for the companies who produce non-bulk goods, as per estimates by CRISIL.

Credit Facility:

The businesses which are registered under GST will now be allowed to avail credit on input expenses. Although the rules for input credit have become stringent, it is still beneficial for all the businesses. This would further reduce the prices of the products and services.

The Negative Impact Of GST On Start-Ups And SMEs:

Increased Tax Burden:

Previously, manufacturers with a turnover below Rs. 1.5Cr were exempted from paying taxes.However, under the new regime, this exemption threshold has been reduced to Rs. 20 lakhs. This means most of these manufacturers will now come under the scope of GST. As a result, this will lead to surcharge of prices for certain goods.

Stringent Compliance:

Businesses will now have to comply with rigid rules that are laid by the GST Council. Some of these rules include a minimum of 37 returns to be filed by every taxpayer annually, requirement of some funds in the form of electronic credit, and GST compliance rating.

Timely Filing:

All the purchase invoices will have to be reconciled with the supplier and by the 10th of every month, these invoices must be uploaded. Non-compliance could lead to adverse consequences.

GST Compliance Rating:

GST input credit and refund will be given to businesses basis their GST compliance rating. This will ensure that all taxpayers are duly complying with the GST laws. Taxpayers will be allowed input credit only if their suppliers have a credible GST compliance rating. Moreover, the timeline to claim input tax credit is short- before the due date of filing returns for September of the next FY (financial year) or the due date of filing annual returns, whichever is earlier.

7 Types Of Colleagues Found In Every Successful Organization

Business How To’s

25 August 2021

7 Types Of Colleagues Found In Every Successful Organization

  • Posted by awfis

A dynamic enterprise usually thrives on a cocktail full of spunky personalities. Each brings in their unique talents and habits that fit like perfect pieces in a puzzle. From the sassy boss to the clingy colleague, here’s some types that you are bound to bump into…

1. The compulsive foodie(s)

Instead of clients, this one’s got all the city’s restaurants on speed dial. From Domino’s to the latest hotspot in town, their peckish appetite will ensure that there’s plenty food circulating all around office. Whether, you’ve got random board meetings or your team’s working at odd hours – you’ll never be hungry ever.

2. The witty assassin

This one will ‘slay’ you more lethally than Beyonce or Eminem ever will.  Come hell or sunshine, he or she’s got the perfect comeback for every painful person and situation. Known for having their fair share of haters, they’re also true entertainers. But, it’ll do you good to remember that it’s a war of words that’s not worth playing….

3. The jack-of-all trades

From sweet talking to https://www. to executing any kind of project – you name it & it is done.  This breed seldom takes no for an answer.  Whatever is touched turns to gold and they will leave you wondering how it got done. If you need a helping hand, an insightful shrink, or someone to walk your dog, rest assured you can depend on this pro multi-tasker with your eyes shut!

4. The road runner

This famous few will be on their toes, always on the phone, pretending to be busier than the Kardashians.  Your’re more likely to see them at the office door as a permanent fixture. All the worlds’ people know this person and this social butterfly is likely to know everyone. Constantly on the move, you’ll need this PR pro to take your business to places.

5. The tech geek

You’ll always find this genius, behind a bunch of wires, computers and applications. Broke a light bulb, had a short-circuit or you found your desktop suddenly crashed… Fret not. Dexter’s got the perfect fix. Quiet and demure, he probably takes pride in being faster than a normal computer. But, if you’re a know-it-all, then you might not like this mister…

6. The swear champion

This person believes in pure tough love. Yeah, ouch! When the pressure builds up and clients turn demanding, then be sure to hear a spew of gushing swears. Whether it’s loud and clear or below the belt, this one is feared and they sure know how to get work done. Tip: They are usually in positions of power and you’d rather never cross the line with them

7. The constant complainer

This one’s a problem magnet. Even on the brightest day where there’s plenty of reason to rejoice, this type loves telecasting their worries. This includes the coffee machine, that might have broken down or the weather that suddenly turned rotten – there’s always something to say. However, their minute observation constantly keeps you in check and hey! Be assured that you’ll get plenty feedback for the tiniest things on agenda.

But whether you like it or not… take each of these types with a pinch of salt, because they make for the big brains and even bigger learning curves…

Things Every Entrepreneur Can Learn From Pursuit of Happyness

Business How To’s

25 August 2021

Things Every Entrepreneur Can Learn From Pursuit of Happyness

  • Posted by awfis

Pursuit of Happyness is an iconic movie which was released in 2006. It has been 10  years since it released, but never fails to inspire the viewer. It fills the person with a determination to fight for their dreams irrespective of the hindrances that come along.

Based on a true story of Chris Gardner, a man who loses everything , but manages to get everything because of his perseverance. They show how Chris and his son battle a period of homelessness selling medical bone density scanners while being enrolled in an internship as a stock broker.

pursuit_of_happyness poster

Here are the important things that every entrepreneur can take from the movie:

1. Be ready for extreme hardships:

We’ve seen in the movie that Chris Gardner goes through numerous hardships. Whether it comes to selling his bone density scanners or taking up an internship while managing to take care of his son and provide for him. He doesn’t lose his determination even when everything seems bleak. It’s important not to give up and go on and try to overcome the problems that we come across, daily.

2. Aim for the stars

Always aim high! Believe in yourself and everything can be conquerable. Chris Gardner took a chance and went for an option of interning as a stockbroker where only one person at the end would be given a job! He took a chance when the odds were against him and proved that all you need is an opportunity to achieve things when you set your heart at it.

3. Put In all the effort

When you want to achieve something make sure you give your best shot. A half hearted attempted is a good as not giving it a try. Chris Gardner has many close calls, where anyone else would have given up. He even fixes a bone density scanner at the homeless shelter to make the ends meet.  He has proved that if one wants anything eagerly in life, they should work as if their life depends on it.

4. Never let anyone’s judgement cloud your decision

Do not forget to believe in yourself, even if everyone gives up on you. Your decisions should be made on the basis of your logic and intuition rather than someone else’s judgement. Chris does not give up on the internship even when his wife leaves him. Instead he gets even more determined to succeed. Listen to your heart and no one else’s opinion. Immerse yourself in your dream idea!

5. Never show signs of weakness

Always show your strengths. The moment you do that, everything will fall into place. Fear is the toxin, hope and belief is the antidote. Chris always greeted everyone on a positive note and did not even flinch when he has to shell out his last 5$ to pay for executives cab fare. Quick thinking and how you transform your weaknesses into strengths is what matters eventually.

Chris Gardner’s remarkable achievements show that no matter how many obstacles you face, the rules for success are the same for everyone. If you follow the rules, no matter how difficult it gets, you will reap the reward of your own “Pursuit of Happyness.”

5 Effective Strategies to Market Your Freelance Career

Business How To’s

25 August 2021

5 Effective Strategies to Market Your Freelance Career

  • Posted by awfis

What’s better than doing the job that you love and getting paid for it? That’s the life of a freelancer. You get the best of both the worlds where you get to mix passion and profession together. Freelancing is no magic, you can either be an individual with your own website or a part of a team who has been taking up projects from various clients for over a period of time.


If you are a freelancer and are wondering about the next steps to make it successful, here are some strategies that we think will help you make it a long term career.

  1. Create a checklist of your deliverables:

The first step to promote your freelance career is to list down your skill set in the order of strength. It can be writing, graphic designing, creating video content or anything else that you think is your forte. Once you have this list ready, your reality will be in front of your eyes. The strengths can eventually result into a niche market of your own, via freelancing.

  1. Make sure your content reaches your target audience:

In today’s world identifying your potential client, plays key while marketing for the freelancer. In order to ensure this, make sure that your content is shared on all the social media platforms. For example, if you have created a video make sure you maximize it on YouTube, Facebook, Twitter and other relevant social media platforms. With this you can increase the visibility of your content and influence them with your content.

  1. Do not forget to focus on e-mail marketing:

E-mails are the best way to reach the correct target audience. The click through rate might be less compared to other social media platforms but around 90% of the audience using e-mails check it daily. People sign up for various sites knowing that they would be receiving mails from that particular website. It is the easiest way to cover a large network area. If you are a little shy or lack the opportunity to connect with the right market, cold emailing will be the best way to reach out to your target.

  1. Maintain your website traffic and Inquiry section efficiently:

The easiest way for people to contact you is through the inquiry section on your website. Do respond to inquiries as soon as you can as this will uplift the credibility of your brand. Along with that make sure Search Engine Optimisation and Search Engine Marketing for your page/website is up to mark. As they say, optimizing the page is better than being lost somewhere amidst millions of similar searches.

  1. Get referrals from your clients:

Referrals provide authenticity to your work. Word of mouth is better than any other form of marketing. Use it as an advantage and get credibility for your work. Effective relationships are built over a period of time. They not only enable you to reach out to your potential clients, but also motivate you to perform better. Do not hesitate to get testimonials from clients you’ve delivered great service to!

Using these strategies will prove beneficial for kick-starting your freelancing career. If you are ready and confident about your freelancing skills, it’s time to implement these strategies in reality!