Latest News
How Will The GST Affect Startups?
The Goods and Services Bill will be implemented from midnight today and will influence many industries from entertainment to corporations. The startup ecosystem will also be affected by this economic integration of the Indian economy. The biggest indirect tax reform in India since 1947 is expected to consolidate and streamline the process of indirect taxation in an attempt to make it easier and more effective.
Before the implementation of one of the biggest changes brought by the Modi Government let’s take a look at how this reform will shape the startup ecosystem.
1. Increased threshold for registration
As per the soon to be former tax laws, any business that makes a turnover of more than 5 Lakhs has to get Value Added Tax (VAT) registration and pay VAT. Similarly, any business with a turnover of more than 10 Lakhs is required to register with the state tax authorities and obtain a tax identification number. Under the new regime, the limits for registration will be raised to Rs. 10 Lakhs and Rs. 20 Lakhs respectively. Therefore startups at a nascent stage need not worry about registration and can concentrate on growth.
2. Level Taxation field
Under this new tax rule, like small and medium business enterprises, corporates will also be paying taxes on interstate transfer and movement. The GST bill will tax stock transfers as well thereby bringing parity between big corporate players and small companies. The turf war between the Centre and states due to differential tax regime will also be reduced since the GST Tax reform will reduce the multiplicity of taxes, thereby bringing down compliance costs. E commerce and online startups active in multiple states will face no complication in the movement of goods between states, as the GST is applicable all over India, all differential treatments and confusing compliance regimes will be removed.
3. Tax Credit and Simpler Taxation
Startups in the service industry need to pay service tax under the current tax laws. But the implementation of the GST will allow startups paying the service tax to set off the VAT paid on purchases with the service tax on their sales. This reform will offer a boon to service industry providing services as costs will be reduced and thereby increasing working capital to the already overburdened startup. Furthermore, startups dealing with both goods and services will have to pay one GST Tax instead of both VAT and service tax. The GST will also encompass the various tax compliances under Excise, VAT, CST, Service Tax etc., reducing the time spent on tax compliances.
4. Limitations
While the GST bill would reform the startup sector tremendously, it is also important to note the limitations and disadvantages that will come with the bill. For starters, e-commerce sector startups will not be able to avail the increased registration threshold. Manufacturing units will face the brunt end of the stick under the new laws. Any manufacturing unit with a turnover less than Rs. 1.50 crores were exempt from paying taxes in accordance with the current laws. However, according to estimates, the exemption limit can be brought down to Rs. 25 lakhs under the new rules, bringing a large number of SMEs under the tax net.
A lot can be speculated over the impending implementation of the biggest tax reform. One thing that can be assured is that taxation in India will be changed completely. To avoid further confusion, the Government of India has asked restaurants and business to close shop before midnight.
Peak XV Partners has launched three new funds totaling $1.3 billion, targeting India’s booming startup ecosystem. The lineup features the $600M Surge fund (8th edition) for early-stage ventures, a $300M Growth Fund for Series B+ scaling, and a $400M Acceleration Fund for rapid portfolio expansion. This commitment arrives as India’s VC inflows rebound, with AI and fintech leading 2026 trends.
These funds build on Peak XV’s legacy of backing unicorns like Zomato and Pine Labs, offering founders capital plus strategic guidance amid post-winter recovery. Early-stage deals surged 20% last year per Tracxn, positioning Peak XV to fuel the next wave of innovation in SaaS, climate tech, and consumer plays.
For startups eyeing Peak XV new funds or Surge fund 2026 applications, this signals prime opportunities. Investors and marketers should watch for deployment updates India remains a global VC hotspot.
Hyderabad, January 13, 2026 Neeman’s, India’s leading D2C footwear brand famed for sustainable shoes and patented PIXLL® technology, has raised $4 million from existing investors. This funding boosts its cumulative capital past $10 million since 2015, with a post-money valuation nearing $50 million. CEO Vijay Chahoria emphasized offline retail as the “next frontier,” planning 50+ new stores in Tier 2/3 cities like Jaipur and Lucknow to blend eco-friendly innovation with hands-on customer experiences.
In India’s booming D2C ecosystem where footwear sales hit ₹1.2 lakh crore in 2025 Neeman’s targets hybrid retail amid high online CAC and 25-30% returns. Backed by vegan, machine-washable shoes priced ₹2,000-4,000, the brand leverages PIXLL® (5x more breathable than leather) for carbon-neutral comfort. Recent 5x revenue growth to ₹100 crore ARR, 1M+ pairs sold via Myntra and stores, and awards at India D2C Summit 2025 position it ahead of rivals like Paaduks.
Neeman’s offline expansion India eyes the $15B sustainable footwear market by 2028, fueled by PLI schemes, Gen Z’s 70% eco-preference (Nielsen), and Southeast Asia exports. Challenges like real estate costs are offset by data-driven inventory and omnichannel QR tech. Watch for Q1 2026 launches in Hyderabad and Bengaluru redefining D2C success through authentic, “Wear the Change” branding.
The Centre is weighing the option of revoking X’s safe harbour status in India after its AI chatbot Grok was allegedly misused to generate and circulate obscene and sexually explicit content, including material seemingly involving minors. The IT Ministry has already issued a notice to X, directing the platform to remove unlawful content, fix Grok’s safeguards, act against violators, and submit a detailed compliance report within a tight deadline. If the government finds X’s response inadequate, it could argue that the platform has failed to meet due‑diligence standards under Indian law, opening the door to harsher action.
Under Section 79 of the IT Act, safe harbour protects intermediaries like X from being held directly liable for user‑generated content, provided they follow due‑diligence rules and promptly act on legal takedown orders. Revoking this protection would mean X and its officers could be exposed to criminal and civil liability for obscene, unlawful, or harmful content that remains on the platform, including AI‑generated images from Grok. This prospect significantly raises X’s compliance risk in India and could force tighter moderation, stricter AI controls, and more aggressive removal of flagged posts.
The Grok episode also spotlights the regulatory grey zone around generative AI, where tools can create harmful content at scale even without traditional user uploads. Policymakers are increasingly questioning whether AI outputs should still enjoy the same intermediary protections as conventional user posts, especially when they involve women and children. How the government ultimately proceeds against X over Grok misuse could set a precedent for AI accountability, platform responsibility, and safe harbour interpretation in India’s fast‑evolving digital ecosystem.
Peak XV New Funds: $1.3B Commitment for India Startup Surge 2026
Zupee Bolsters Short-Video Play with Vertical TV Acquisition Under INR 40 Cr
MM88
November 5, 2025 at 10:41 am
Với giao diện mượt mà và ưu đãi hấp dẫn, MM88 là lựa chọn lý tưởng cho các tín đồ giải trí trực tuyến.
iwin
November 6, 2025 at 2:05 am
iwin – nền tảng game bài đổi thưởng uy tín, nơi bạn có thể thử vận may và tận hưởng nhiều tựa game hấp
站群程序
November 7, 2025 at 6:40 am
采用高效谷歌站群策略，快速提升网站在搜索引擎中的可见性与权重。谷歌站群
谷歌蜘蛛池
November 9, 2025 at 5:11 pm
利用强大的谷歌蜘蛛池技术，大幅提升网站收录效率与页面抓取频率。谷歌蜘蛛池
J88
November 10, 2025 at 3:17 am
Đến với J88, bạn sẽ được trải nghiệm dịch vụ cá cược chuyên nghiệp cùng hàng ngàn sự kiện khuyến mãi độc quyền.
MM88
November 18, 2025 at 4:43 am
Khám phá thế giới giải trí trực tuyến đỉnh cao tại MM88, nơi mang đến những trải nghiệm cá cược thể thao và casino sống động.
Kuwin
November 20, 2025 at 9:26 pm
kuwin sở hữu kho game đa dạng từ slot đến trò chơi bài đổi thưởng, mang đến cho bạn những giây phút giải trí tuyệt vời.
GO88
December 2, 2025 at 5:41 am
Tham gia cộng đồng game thủ tại Go88 để trải nghiệm các trò chơi bài, poker phổ biến nhất hiện nay.