Centre may tweak GST structure for startups, refunds to get easier

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After the decision to provide relief to start-ups on assessment of angel tax notices, the government is likely to relax procedures for tax assessment and might tweak the existing structure in the form of Goods and Services Tax (GST) so that tax refunds become easier for start-ups. “The government is committed to promote healthy atmosphere for start-ups. In last few months, we have taken many steps, eased out many procedures. Currently, start-ups are facing problem in getting refunds on tax deducted at source. We are looking at tweaking this system to make it easier for the start-ups to get refunds,” a senior Central Board of Direct Taxes (CBDT) official told this publication.

Many start-ups had flagged their concerns over getting refunds on tax deducted at source. They claimed that it impacts their whole cash flow and can severely impact their operations. The CBDT, in its notification on August 10, made it clear that start-ups and angel investors would not come under the purview of the dreaded tax. The notification assured that explanation given by them to a tax notice in a limited scrutiny case would be summarily accepted without any questions asked by the taxman, thus giving them conducive environment to promote their growth.

Read More at: http://www.newindianexpress.com/business/2019/aug/17/centre-may-tweak-gst-structure-for-startups-refunds-to-get-easier-2020173.html