Why Indian startups are welcoming GST

The present news is making the buzz in the country, GST goods and services tax is surely a relief for the tax payers, as they are now estimated to pay a single combined tax in its place of the superfluity of taxes like Central Excise, Octroi, State Value- Added Tax, Service Tax, and many other subsidiary taxes. Combination and transformation of procedure of indirect taxation will now be made with ease and more efficient. The GST bill is supposed to fuel the economic integration of the Indian economy. 

Considering this tax will be charged on sales, production, and consumption of goods apart from services at the State government and Central government levels, it is rest certain that the difference between Goods and Services will be diminish progressively, making sure tax compliances become easier. It as well, is appealing to know that the country is taking one more step towards development with GST as most of the countries that are developed use this form of taxation, not only for ease and convenience but to avoid double taxation too.

Goods and Services tax will be allocated on transaction value that includes contract, packing cost, and all other expenses acquired for sales. Whereas, every other state is in support of the bill, the government of Tamil Nadu feels that this bill may take away the independence of the State government.

Some of the main influences of GST on startups in India are as follows:

1)      Immunity for new businesses:

Currently, businesses with gross revenue of more than INR 5 lakhs should get VAT registrations and pay VAT. But, GST will rise this limit upto R 10 lakhs and above. The industries with earnings between Rs. 10L and 50L will be taxed at lesser rates. This will definitely help to reduce tax burdens on freshly established businesses.  In addition, GST will bring about an ease in launching new businesses. For instances, new businesses require a VAT registration from sales tax department, other than undergoing many processes and fee payments in every state. Here, GST comes in a welcome change, carrying out uniformity in the process. Goods and Services Tax will allow centralized registration, thereby encouraging business startups, and developments.    

2)      Relief for sales and services sectors:

One of the most complex businesses is restaurants that are both into services and sales, go down under two taxations, i.e. food and service. Therefore, they calculate both VAT and service tax separately, creating the whole calculation process very complicated. GST comes as a relief to this sector in which the taxation will not distinguish between sales and business services, making sure tax calculations are done on the total amount.

3)      Cost Reduction- transportation & logistics:

GST will make sure that the interstate movement becomes inexpensive and is less time consuming, by eradicating small border taxes and resolving check post issues. This will unavoidably decrease the number of costs connected with upholding greater stocks, as there will be a smooth movement of goods.

4)      Simple revenue system:

At the moment, startups expend a lot of energy, time, and hard work in organizing innumerable taxes at innumerable points. Considering and then following unlimited rules and regulations at different States makes the procedure of setting up a new business a very complex affair. Goods and services tax not only simplifies the process by incorporating all the taxes to be charged but as well makes the whole process of tax paying an entire lot simpler.

5)      Benefit for online startups:

With no doubt, goods and services tax has demonstrated a blessing for all the business startups operating through e-commerce platform. There are various startups that are operating in the cyberspace and are offering products by means of the internet. The earlier taxation regime had been making hurdles for them as they had to pay various taxes in each state. But, GST execution will set them free from these hurdles.

In general, GST will be a blessing for business startups and various other sectors. It is estimated to be a large savings for logistic, manufacturing and retail companies. But, decision other sectors dealing with luxury products such as tobacco products, cars, etc. will face higher tax rates between 27%-40%, as per market research.  

There are numerous arguments that are clouding the sky of GST. Above mentioned advantages, with others are being spotlighted by those who concur with the pathbreaking tax reform. The critics of goods and services tax hold different views and are raising arguments in the direction of revenue losses which the state might incur. But, the Centre has taken this into factor and has made a provision to redress state for any losses created by them as a consequence of. Therefore, it won’t be wrong to plan that GST’s positives be more important than its negatives and it is certainly going to reform that way startups were operating.

Quality Assurance has an intrinsic role in Digital Transformation

As the globe moves on from relying on paper to becoming wireless as of constant changes in technology and competition, businesses are gradually forced to experience a digital transformation to stay relevant in a dynamic marketplace. Some organizations are going to take a lot of time and resources whilst experience a transformation, however the sacrifices made are completely vital to secure customer retention in the long run.

Importance of Quality Assurance:

Quality Assurance organizations require maintaining the whole customer experience while ensuring the production and delivery of high quality applications. This can be managed by amalgamating silos across the entire range of business procedure, quality assurance, combing development, and marketing teams to enhance process validation, setting up mobile testing labs, and implement risk-based testing based on comprehensive analytics.

The success of any company after its digital transformation hinges greatly on its clients.  At the time of a transformation of any kind, firms are going to focus on upgrading their infrastructure and thus take away existing obsolete processes and execute newer efficient ones instead. Therefore, it is in this vital period of transition that quality assurance is obligatory. As any anomalies encountered early can be put correct and are not very likely to be reflected in the delivery of polished, high quality products. To be useful in maintaining the quality and stability that clients have come to estimate from an organization, QA team need to:

1)      Blend integration tests into the overall app lifecycle that cleans up a product from top to bottom.

2)      Implement universal automation all through the value chain that streamlines test execution.

3)      Manage many services, apps, and platforms to assure smother development of complex, sophisticated products.

Quality assurance role in transformation:

Quality assurance plays a vital role in the expedition of digital transformation.  Executing quality checkpoints along the path guarantees the desired business outcomes, also end-user satisfaction the ultimate objective.

A complete digital transformation changes business activities at every level. QA efforts build up the products at each phase all through the development lifecycle and alleviate confronts posed by new technology. Quality assurance is in the best bolstering role in any organization’s digital initiative to protect security and performance.

Fortunately, enterprises proceeding in the direction of extended digitalization already recognize the associated risks and see the big picture of quality challenges. Consequently, number of them does not hesitate to enlarge their quality measures and spend a lump of their IT budget on quality assurance alone.

Quality Assurance’s Major Objectives:

Good QA measures meet the three major objectives of a company’s digital transformation: increasing quality awareness, protecting the corporate image, and ensuring end-user satisfaction.

Safeguarding the customer experience and brand:

Quality assurance efforts measures end-user undergo across various digital platforms. This enhances accessibility, diminishes response time, and increase the consistency of brand. A good quality assurance program can attend to the challenges for testing consumer experience in multi-channel solutions:

1)      Getting the right coverage of end-user needs and demands  in the test set

2)      Designing test cases

3)      Implementing  and utilizing test tools for customer experience testing

4)      Establishing environments and test data for customer experience testing

Lifecycle automation:

Quality assurance speeds up the transformation process not only by application-level automation, however also by lifecycle automation.  Apart from taking benefit of conventional automation, a quality assurance aims on testing the complete lifecycle, therefore ensuring cross-platform compatibility and customer-experience testing, as per a market research.

The next big thing across industries is the Blockchain Technology

A blockchain is an unidentified online ledger, which uses information structure to justify the way you transact. It also permits its customers to influence the ledger in a secure way without the help of a third party. A bank’s ledger is connected to a centralized network. But, a block chain is anonymous, protecting the identities of the customers. This helps to carry out transactions in a more secure way with the blockchain. The algorithim used in blockchain diminishes the dependence on people to authenticate the transactions. This technology used for several transactions has the possibility to interrupt the financial system.

How it works?

Block chain facilitates two entities that do not know each other to agree that something is true without the necessity of a third party’s interference. As against to writing entities into a single sheet of paper, a blockchain is a distributed database, which takes several inputs and places them into a block. Every block is then ‘chained’ to the subsequent block using a cryptographic signature. This permits blockchain to be used as a ledger which is reachable by anyone with approval to do so, according to a market research.

Why are banks interested?

All main banks are conducting trials with blockchain as they can use it for record keeping, money transfers, and other back-end functions. The paper -intensive worldwide trade finance procedure as an electric decentralized ledger that provides all the participating entities is duplicated by blockchain application, including banks, the ability to access a single source of data.

It also allows them to track documentation and verify ownership of assets digitally, as a permanent ledger in real time. Infosys and TCS, the Indian IT service providers are increasingly incorporating the use of blockchain technology. Two of these companies, for banks are utilizing blockchain system to make core banking platforms.

Is It Safe?

Blockchain permits financial institutions to perform and validate transactions confidentially devoid of any human intervention. The blockchain’s USP is that it permits two parties to perform a transaction without any mediator.

The electronic ledger of transactions is constantly maintained and verified in ‘blocks’ of records. Professionals believe that blockchain architecture can importantly bring down the costs and enhance effectiveness in the financial sector. Through cryptography, the tamper-proof ledger is shared between parties on computer.