DPIIT is looking to reduce the compliance time taken by startups to only one hour per month in an effort to boost the regulatory environment for emerging entrepreneurs.
Envisioned by BJP in its election manifesto in April this year, the Department for Promotion of Industry and Internal Trade (DPIIT) is looking to reduce the compliance time taken by startups to only one hour per month in an effort to boost the regulatory environment for emerging entrepreneurs. DPIIT had proposed the same in its Start-up India Vision 2024 document announced in late April.
The move is targeted towards cutting down startups’ “monthly compliance” time to one hour so that “they can concentrate on their core work,” PTI reported citing an official.
This would help startups focus on running the business instead of “GST filings, tax returns and other local laws every month”, the official said, that otherwise costs entrepreneurs time and money.
However, this seems to be a long shot by the government as the time taken for GST filing alone is subjective depending upon company size and presence. “We have 14 offices in multiple states and it takes around 7-10 days to crunch data and calculate, prepare documents, and then file GST. However, we have a separate team that takes care of the compliance part,” Mandeep Manocha, Co-founder and CEO, Cashify told Financial Express Online.
One hour might be the time involved in filing GST but the entire process to be completed in a single hour is not possible today, Manocha said.
The department in its Vision document had also said that it would enable set up of 50,000 new startups and 20 lakh direct and indirect jobs by 2024.
The document had also highlighted setting up of 500 new incubators and accelerators, 100 innovation zones in urban local bodies and seven research parks operational to support innovative startups.
In terms of capital support, DPIIT had proposed allocating entire corpus of Rs 10,000 crore Fund of Funds along with enhancing CSR funding to incubators. IT had also mentioned setting up an India Startup Fund of Rs 1,000 crore for technology startups and another Rs 1,000 crore in seed funding to startups.
The document further stated the need for setting up of single window system by banks for disbursing loans to startups.
So far, 18,711 startups have been recognised by the government Startup India program launched by Prime Minister Narendra Modi in January 2016. 182 startups have received funding under the program.
However, according to the budget documents, the government in this year’s budget reduced the allocated amount for Startup India to Rs 25 crore from the revised estimate of Rs 28 crore in FY19, PTI reported.
The government, however, had increased allocation for Make in India programme to Rs 473.3 crore for 2019-20 from the revised estimate of Rs 149 crore in 2018-19.