Startup Sector
Startup Sector
Startups refer to early-stage ventures often driven by innovation, scalability, and disruption across various industries such as technology, healthcare, education, finance, e-commerce, and consumer products. These entities typically operate in dynamic environments with rapidly evolving business models that may include product development, platform-based services, and digital-first strategies.
Startups refer to early-stage ventures often driven by innovation, scalability, and disruption across various industries such as technology, healthcare, education, finance, e-commerce, and consumer products. These entities typically operate in dynamic environments with rapidly evolving business models that may include product development, platform-based services, and digital-first strategies.
Startups refer to early-stage ventures often driven by innovation, scalability, and disruption across various industries such as technology, healthcare, education, finance, e-commerce, and consumer products. These entities typically operate in dynamic environments with rapidly evolving business models that may include product development, platform-based services, and digital-first strategies.
Types of Transactions for Goods and Services in Startups
Types of Transactions for Goods and Services in Startups
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.
Sale of Products
Includes physical goods like merchandise, packaged food, hardware tools, IoT devices, etc.
Sale of Products
Includes physical goods like merchandise, packaged food, hardware tools, IoT devices, etc.
Sale of Products
Includes physical goods like merchandise, packaged food, hardware tools, IoT devices, etc.
Sale of Products
Includes physical goods like merchandise, packaged food, hardware tools, IoT devices, etc.
Digital Services
Mobile applications, subscription platforms, marketplaces, and SaaS-based solutions.
Digital Services
Mobile applications, subscription platforms, marketplaces, and SaaS-based solutions.
Digital Services
Mobile applications, subscription platforms, marketplaces, and SaaS-based solutions.
Digital Services
Mobile applications, subscription platforms, marketplaces, and SaaS-based solutions.
Service-Based Offerings
Consulting, training, logistics, health tech, edtech, and fintech services.
Service-Based Offerings
Consulting, training, logistics, health tech, edtech, and fintech services.
Service-Based Offerings
Consulting, training, logistics, health tech, edtech, and fintech services.
Service-Based Offerings
Consulting, training, logistics, health tech, edtech, and fintech services.
Common Business Models
Common Business Models
B2B (Business-to-Business)
Services and products offered to other businesses, such as HR tech tools, accounting software, or logistics platforms.
B2B (Business-to-Business)
Services and products offered to other businesses, such as HR tech tools, accounting software, or logistics platforms.
B2B (Business-to-Business)
Services and products offered to other businesses, such as HR tech tools, accounting software, or logistics platforms.
B2B (Business-to-Business)
Services and products offered to other businesses, such as HR tech tools, accounting software, or logistics platforms.
B2C (Business-to-Consumer)
Direct-to-customer models including e-commerce, personal finance apps, wellness platforms, and online learning.
B2C (Business-to-Consumer)
Direct-to-customer models including e-commerce, personal finance apps, wellness platforms, and online learning.
B2C (Business-to-Consumer)
Direct-to-customer models including e-commerce, personal finance apps, wellness platforms, and online learning.
B2C (Business-to-Consumer)
Direct-to-customer models including e-commerce, personal finance apps, wellness platforms, and online learning.
B2G (Business-to-Government)
Startups providing solutions for public sector use — common in edtech, healthtech, or civic tech spaces.
B2G (Business-to-Government)
Startups providing solutions for public sector use — common in edtech, healthtech, or civic tech spaces.
B2G (Business-to-Government)
Startups providing solutions for public sector use — common in edtech, healthtech, or civic tech spaces.
B2G (Business-to-Government)
Startups providing solutions for public sector use — common in edtech, healthtech, or civic tech spaces.
GST Applicability, Rate, and Service Codes
GST Applicability, Rate, and Service Codes
Goods
GST rates vary by category (5% to 18%). For example, packaged food items may attract 5%, while electronic devices are typically taxed at 18%.
Goods
GST rates vary by category (5% to 18%). For example, packaged food items may attract 5%, while electronic devices are typically taxed at 18%.
Goods
GST rates vary by category (5% to 18%). For example, packaged food items may attract 5%, while electronic devices are typically taxed at 18%.
Goods
GST rates vary by category (5% to 18%). For example, packaged food items may attract 5%, while electronic devices are typically taxed at 18%.
SaaS and Digital Platforms
Attract 18% GST, usually under HSN Code 997331 for online digital services or 9984 for telecom and broadcasting services.
SaaS and Digital Platforms
Attract 18% GST, usually under HSN Code 997331 for online digital services or 9984 for telecom and broadcasting services.
SaaS and Digital Platforms
Attract 18% GST, usually under HSN Code 997331 for online digital services or 9984 for telecom and broadcasting services.
SaaS and Digital Platforms
Attract 18% GST, usually under HSN Code 997331 for online digital services or 9984 for telecom and broadcasting services.
Professional and Advisory Services
GST at 18%, under HSN Code 9983 for business consulting and technical support.
Professional and Advisory Services
GST at 18%, under HSN Code 9983 for business consulting and technical support.
Professional and Advisory Services
GST at 18%, under HSN Code 9983 for business consulting and technical support.
Professional and Advisory Services
GST at 18%, under HSN Code 9983 for business consulting and technical support.
Training and Educational Services
May be exempt if provided by recognized institutions. Otherwise, 18% GST typically applies
Training and Educational Services
May be exempt if provided by recognized institutions. Otherwise, 18% GST typically applies
Training and Educational Services
May be exempt if provided by recognized institutions. Otherwise, 18% GST typically applies
Training and Educational Services
May be exempt if provided by recognized institutions. Otherwise, 18% GST typically applies
Input Tax Credit (ITC), Setoff, and Restrictions
Input Tax Credit (ITC), Setoff, and Restrictions
Eligible ITC
ITC is not available for goods or services used for personal consumption.
Eligible ITC
ITC is not available for goods or services used for personal consumption.
Eligible ITC
ITC is not available for goods or services used for personal consumption.
Eligible ITC
ITC is not available for goods or services used for personal consumption.
Restrictions
No ITC on items used for personal consumption or goods/services exclusively for exempt supplies.
Restrictions
No ITC on items used for personal consumption or goods/services exclusively for exempt supplies.
Restrictions
No ITC on items used for personal consumption or goods/services exclusively for exempt supplies.
Restrictions
No ITC on items used for personal consumption or goods/services exclusively for exempt supplies.
Capital Goods
ITC is allowed if used entirely for business purposes. Partial business use may limit claims.
Capital Goods
ITC is allowed if used entirely for business purposes. Partial business use may limit claims.
Capital Goods
ITC is allowed if used entirely for business purposes. Partial business use may limit claims.
Capital Goods
ITC is allowed if used entirely for business purposes. Partial business use may limit claims.
Compliance Requirements
Compliance Requirements
GST Registration
Mandatory if annual turnover exceeds ₹20 lakhs (₹10 lakhs in special category states).
GST Registration
Mandatory if annual turnover exceeds ₹20 lakhs (₹10 lakhs in special category states).
GST Registration
Mandatory if annual turnover exceeds ₹20 lakhs (₹10 lakhs in special category states).
GST Registration
Mandatory if annual turnover exceeds ₹20 lakhs (₹10 lakhs in special category states).
Returns Filing
GSTR-1: Monthly or quarterly reporting of outward supplies.GSTR-3B: Summary return for tax payments and ITC claims.GSTR-9: Annual return if turnover exceeds ₹2 crores.
Returns Filing
GSTR-1: Monthly or quarterly reporting of outward supplies.GSTR-3B: Summary return for tax payments and ITC claims.GSTR-9: Annual return if turnover exceeds ₹2 crores.
Returns Filing
GSTR-1: Monthly or quarterly reporting of outward supplies.GSTR-3B: Summary return for tax payments and ITC claims.GSTR-9: Annual return if turnover exceeds ₹2 crores.
Returns Filing
GSTR-1: Monthly or quarterly reporting of outward supplies.GSTR-3B: Summary return for tax payments and ITC claims.GSTR-9: Annual return if turnover exceeds ₹2 crores.
Audit Requirements
Mandatory GSTR-9C audit if turnover exceeds ₹5 crores.
Audit Requirements
Mandatory GSTR-9C audit if turnover exceeds ₹5 crores.
Audit Requirements
Mandatory GSTR-9C audit if turnover exceeds ₹5 crores.
Audit Requirements
Mandatory GSTR-9C audit if turnover exceeds ₹5 crores.
Reconciliation:
Regular matching of ITC in GSTR-2A/2B with books.
Reconciliation:
Regular matching of ITC in GSTR-2A/2B with books.
Reconciliation:
Regular matching of ITC in GSTR-2A/2B with books.
Reconciliation:
Regular matching of ITC in GSTR-2A/2B with books.
Penalties for Non-Compliance
Penalties for Non-Compliance
Penalties for Non-Compliance
Late or Non-Filing
Penalties for Non-Compliance
Late or Non-Filing
Penalties for Non-Compliance
Late or Non-Filing
Penalties for Non-Compliance
Late or Non-Filing
Wrong ITC Claims
Penalty up to 100% of the wrongly availed tax amount.
Wrong ITC Claims
Penalty up to 100% of the wrongly availed tax amount.
Wrong ITC Claims
Penalty up to 100% of the wrongly availed tax amount.
Wrong ITC Claims
Penalty up to 100% of the wrongly availed tax amount.
