DeepTech Sector
DeepTech Sector
Deeptech refers to technologies based on substantial scientific advancements and engineering innovations, including fields such as Artificial Intelligence, Machine Learning, Quantum Computing, Robotics, Blockchain, and other areas requiring significant research and development. Startups in Deeptech often operate at the frontier of technology, involving high-complexity innovations that drive transformative solutions across various industries. These innovations can cater to sectors like healthcare, finance, manufacturing, and logistics, among others.
Deeptech refers to technologies based on substantial scientific advancements and engineering innovations, including fields such as Artificial Intelligence, Machine Learning, Quantum Computing, Robotics, Blockchain, and other areas requiring significant research and development. Startups in Deeptech often operate at the frontier of technology, involving high-complexity innovations that drive transformative solutions across various industries. These innovations can cater to sectors like healthcare, finance, manufacturing, and logistics, among others.
Deeptech refers to technologies based on substantial scientific advancements and engineering innovations, including fields such as Artificial Intelligence, Machine Learning, Quantum Computing, Robotics, Blockchain, and other areas requiring significant research and development. Startups in Deeptech often operate at the frontier of technology, involving high-complexity innovations that drive transformative solutions across various industries. These innovations can cater to sectors like healthcare, finance, manufacturing, and logistics, among others.
Types of Transactions for Goods and Services in Deeptech
Types of Transactions for Goods and Services in Deeptech
Sale of physical devices or hardware associated with the technology, like robotics parts, AI chips, sensors, and other hardware.
Sale of physical devices or hardware associated with the technology, like robotics parts, AI chips, sensors, and other hardware.
Sale of physical devices or hardware associated with the technology, like robotics parts, AI chips, sensors, and other hardware.
Technology Consulting Services
Offering expertise in AI, machine learning, and blockchain implementation for businesses.
Technology Consulting Services
Offering expertise in AI, machine learning, and blockchain implementation for businesses.
Technology Consulting Services
Offering expertise in AI, machine learning, and blockchain implementation for businesses.
Technology Consulting Services
Offering expertise in AI, machine learning, and blockchain implementation for businesses.
Software Development and Licensing
Providing customized software solutions or licensing proprietary technology.
Software Development and Licensing
Providing customized software solutions or licensing proprietary technology.
Software Development and Licensing
Providing customized software solutions or licensing proprietary technology.
Software Development and Licensing
Providing customized software solutions or licensing proprietary technology.
Research & Development Services
Collaborating on or conducting R&D projects, often requiring specialized talent and facilities.
Research & Development Services
Collaborating on or conducting R&D projects, often requiring specialized talent and facilities.
Research & Development Services
Collaborating on or conducting R&D projects, often requiring specialized talent and facilities.
Research & Development Services
Collaborating on or conducting R&D projects, often requiring specialized talent and facilities.
Subscription-Based Software
Offering Software-as-a-Service (SaaS) products related to data processing, AI analytics, etc.
Subscription-Based Software
Offering Software-as-a-Service (SaaS) products related to data processing, AI analytics, etc.
Subscription-Based Software
Offering Software-as-a-Service (SaaS) products related to data processing, AI analytics, etc.
Subscription-Based Software
Offering Software-as-a-Service (SaaS) products related to data processing, AI analytics, etc.
Nature of Transactions
Nature of Transactions
B2B (Business-to-Business)
Consulting or software development contracts with other businesses.
B2B (Business-to-Business)
Consulting or software development contracts with other businesses.
B2B (Business-to-Business)
Consulting or software development contracts with other businesses.
B2B (Business-to-Business)
Consulting or software development contracts with other businesses.
B2G (Business-to-Government)
Engaging in government projects or research collaborations, especially in AI, robotics, or defense.
B2G (Business-to-Government)
Engaging in government projects or research collaborations, especially in AI, robotics, or defense.
B2G (Business-to-Government)
Engaging in government projects or research collaborations, especially in AI, robotics, or defense.
B2G (Business-to-Government)
Engaging in government projects or research collaborations, especially in AI, robotics, or defense.
B2C (Business-to-Consumer)
Sale of consumer-centric AI software or applications, though less common in the Deeptech space.
B2C (Business-to-Consumer)
Sale of consumer-centric AI software or applications, though less common in the Deeptech space.
B2C (Business-to-Consumer)
Sale of consumer-centric AI software or applications, though less common in the Deeptech space.
B2C (Business-to-Consumer)
Sale of consumer-centric AI software or applications, though less common in the Deeptech space.
GST Applicability, Rate, and Service Codes
GST Applicability, Rate, and Service Codes
Goods
Physical hardware associated with Deeptech typically attracts GST at the standard rate of 18%, depending on the specific classification of the item.
Goods
Physical hardware associated with Deeptech typically attracts GST at the standard rate of 18%, depending on the specific classification of the item.
Goods
Physical hardware associated with Deeptech typically attracts GST at the standard rate of 18%, depending on the specific classification of the item.
Goods
Physical hardware associated with Deeptech typically attracts GST at the standard rate of 18%, depending on the specific classification of the item.
Software as a Service (SaaS)
Generally falls under 18% GST. SaaS is classified under HSN Code 997331 for the supply of online digital content.
Software as a Service (SaaS)
Generally falls under 18% GST. SaaS is classified under HSN Code 997331 for the supply of online digital content.
Software as a Service (SaaS)
Generally falls under 18% GST. SaaS is classified under HSN Code 997331 for the supply of online digital content.
Software as a Service (SaaS)
Generally falls under 18% GST. SaaS is classified under HSN Code 997331 for the supply of online digital content.
R&D Services
May attract GST at 18%, particularly if classified under consulting or scientific and technical consulting services (HSN Code 9983).
R&D Services
May attract GST at 18%, particularly if classified under consulting or scientific and technical consulting services (HSN Code 9983).
R&D Services
May attract GST at 18%, particularly if classified under consulting or scientific and technical consulting services (HSN Code 9983).
R&D Services
May attract GST at 18%, particularly if classified under consulting or scientific and technical consulting services (HSN Code 9983).
Consultancy & Advisory Services
These also attract 18% GST, classified under 998313 for IT consultancy services.
Consultancy & Advisory Services
These also attract 18% GST, classified under 998313 for IT consultancy services.
Consultancy & Advisory Services
These also attract 18% GST, classified under 998313 for IT consultancy services.
Consultancy & Advisory Services
These also attract 18% GST, classified under 998313 for IT consultancy services.
Input Tax Credit (ITC), Setoff, and Restrictions
Input Tax Credit (ITC), Setoff, and Restrictions
ITC can be claimed on GST paid on input services like cloud storage, data processing, software licenses, and hardware purchases essential for business operations.
ITC can be claimed on GST paid on input services like cloud storage, data processing, software licenses, and hardware purchases essential for business operations.
ITC is not available for goods or services used for personal consumption.
ITC is not available for goods or services used for personal consumption.
ITC is not available for goods or services used for personal consumption.
ITC is not available for goods or services used for personal consumption.
ITC on capital goods (such as R&D equipment) may have restrictions if the goods are used partially for non-business purposes.
ITC on capital goods (such as R&D equipment) may have restrictions if the goods are used partially for non-business purposes.
ITC on capital goods (such as R&D equipment) may have restrictions if the goods are used partially for non-business purposes.
ITC on capital goods (such as R&D equipment) may have restrictions if the goods are used partially for non-business purposes.
In cases where Deeptech startups engage in exempt or export services, certain ITC limitations may apply.
In cases where Deeptech startups engage in exempt or export services, certain ITC limitations may apply.
In cases where Deeptech startups engage in exempt or export services, certain ITC limitations may apply.
In cases where Deeptech startups engage in exempt or export services, certain ITC limitations may apply.
Compliance Requirements
Compliance Requirements
GST Registration
Mandatory if turnover exceeds Rs 20 lakhs (Rs 10 lakhs in special category states).
GST Registration
Mandatory if turnover exceeds Rs 20 lakhs (Rs 10 lakhs in special category states).
GST Registration
Mandatory if turnover exceeds Rs 20 lakhs (Rs 10 lakhs in special category states).
GST Registration
Mandatory if turnover exceeds Rs 20 lakhs (Rs 10 lakhs in special category states).
Returns Filing
GSTR-1 (monthly or quarterly) for outward supplies. GSTR-3B (monthly) for summary returns and ITC claims. GSTR-9 (annual return) if turnover exceeds Rs 2 crores.
Returns Filing
GSTR-1 (monthly or quarterly) for outward supplies. GSTR-3B (monthly) for summary returns and ITC claims. GSTR-9 (annual return) if turnover exceeds Rs 2 crores.
Returns Filing
GSTR-1 (monthly or quarterly) for outward supplies. GSTR-3B (monthly) for summary returns and ITC claims. GSTR-9 (annual return) if turnover exceeds Rs 2 crores.
Returns Filing
GSTR-1 (monthly or quarterly) for outward supplies. GSTR-3B (monthly) for summary returns and ITC claims. GSTR-9 (annual return) if turnover exceeds Rs 2 crores.
Audit Requirements
GST audit under GSTR-9C for businesses with annual turnover exceeding Rs 5 crores.
Audit Requirements
GST audit under GSTR-9C for businesses with annual turnover exceeding Rs 5 crores.
Audit Requirements
GST audit under GSTR-9C for businesses with annual turnover exceeding Rs 5 crores.
Audit Requirements
GST audit under GSTR-9C for businesses with annual turnover exceeding Rs 5 crores.
Reconciliation:
Matching of ITC as per GSTR-2A with books, to be done monthly or quarterly.
Reconciliation:
Matching of ITC as per GSTR-2A with books, to be done monthly or quarterly.
Reconciliation:
Matching of ITC as per GSTR-2A with books, to be done monthly or quarterly.
Reconciliation:
Matching of ITC as per GSTR-2A with books, to be done monthly or quarterly.
Penalties for Non-Compliance
Penalties for Non-Compliance
Late Filing
Rs 50 per day (Rs 20 for NIL returns), capped at Rs 5,000.
Late Filing
Rs 50 per day (Rs 20 for NIL returns), capped at Rs 5,000.
Late Filing
Rs 50 per day (Rs 20 for NIL returns), capped at Rs 5,000.
Late Filing
Rs 50 per day (Rs 20 for NIL returns), capped at Rs 5,000.
Non-Filing of Returns
Additional penalties for non-compliance and suspension of GST registration after repeated defaults.
Non-Filing of Returns
Additional penalties for non-compliance and suspension of GST registration after repeated defaults.
Non-Filing of Returns
Additional penalties for non-compliance and suspension of GST registration after repeated defaults.
Non-Filing of Returns
Additional penalties for non-compliance and suspension of GST registration after repeated defaults.
Incorrect ITC Claims
Penalty up to 100% of tax amount if ITC is wrongly availed.
Incorrect ITC Claims
Penalty up to 100% of tax amount if ITC is wrongly availed.
Incorrect ITC Claims
Penalty up to 100% of tax amount if ITC is wrongly availed.
Incorrect ITC Claims
Penalty up to 100% of tax amount if ITC is wrongly availed.
