The union government is planning to exempt startups from service tax and excise duties until their revenues have reached a certain threshold.
According to the Econoimc Times, a group of ministers chaired by Jayant Sinha, minister of state for finance, is planning considering creating a one-stop registration service for all startups. This service is also expected to make the startups eligible for government grants.
Startups which register under the department of science and technology and are certified as ‘bonafide’ will then be eligible for tax exemptions until their revenues reach a certain threshold, according to the Economic Times. They will also qualify to receive grants of up to .`10 crore from the DST.