“The budget has been well-balanced overall, but some concerns still haven’t been addressed for Startups like us.
One of the key concerns for Startups like us is the inverted tax structure. We pay ~18% input tax but get only ~5% output tax. This creates a net input of over 10% which is not credited to us immediately as cash, thus leading to working capital issues.
Secondly, the taxation on startup investments is significantly larger than on investments in public markets. It will really help the startup ecosystem if there is parity between the systems.
India is a market with potential for disruption and innovation as there is an extensive reservoir of youngsters who would like to explore the path of entrepreneurship. Ease of business and ironing out these concerns will fast-track our economy and industry toward growth”.