A STUDY ON GST AND ITS IMPACT AT OCTOSPACES

AIC-OCTOSPACES INCUBATOR SERVICES PRIVATE LIMITED

Project Report submitted in partial fulfillment of the requirements for the

Award of Degree of
MASTER OF BUSINESS ADMINISTRATION
of
BENGALURU CENTRAL UNIVERSITY

By
Gunji Shirisha
MB188226
Under the guidance of
Dr.Tejas B Vyas
Associate Professor

GLOBAL INSTITUTE OF BUSINESS STUDIES

Bangalore University
M.Anurag Reddy
Lead-Operations at Octospaces 2019-2020
 DECLARATION BY THE STUDENT
I hereby declare that “ A Study on Gst and its impact at Octospaces” is the result of the
project work carried out by me under the guidance of Dr.Tejas Vyas in partial fulfilment
for the award of Master’s Degree in Business Administration by Bengaluru Central
University.
I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University or Institute for the award of any other degree or
diploma or Certificate.

Place: Name:
Date: Register Number:
 GUIDE CERTIFICATE
This is to certify that the Project Report title A Study on GST and its impact at
Octospaces Submitted by Gunji Shirisha MB188226 to Bengaluru Central University,
Banaglore for the award of Degree of MASTER OF BUSINESS ADMINISTRATION is a
record of work carried out by her under my guidance.

Place:Bangalore Signature:
Date:
 [Under The Seal and Signature]
This is to certify that Ms Gunji Shirisha of Global Institute of Business Studies B-School,
has undertaken Project on the topic A Study on GST and its impact at Octospces
between August and September under my mentorship.

Signature

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 INDEX
S.No Content Page no
1 Chapter - Introduction
 Introduction about Topic 1-8
 Statement of the problem 9
 Need and relevance of the study 9
2 Chapter - Methodology
 Objectives 10
 Methodology of your research 11-15
 Data Collection 16
 Limitations 16
3 Chapter – SWOC of Research
 Strength 17
 Weakness 17
 Opportunities 18
 Challenges 18
4 Chapter – Outcome of the study 19-25
5 Chapter -
 Experience 24-25
 Learning 26-28
 Conclusion 29
BIbilography 30
 Chapter -1
INTRODUCTION

GST (Goods and services Tax) is an indirect tax which is implemented in India on the supply
of goods and services. The GST came into effect from July 1, 2017 with the implementation
of One Hundred and First Amendment of the Constitution of India by Indian Government
with the replacement of existing multiple flowing taxes levied by the central and state
Governments.
In the year 2000 was set up to draft law. It took 17years from then to evolve. In 2017 the GST
Bill was passed in the Lok Sabha and Rajya Sabha. On 1st July 2017 the Law came into force.

The division of Goods and Services is done on the basis of different tax slabs for the
collection of tax – 0%, 5%, 12%, 18% and 28%. Petroleum products, alcoholic drinks and
Electricity are some of the goods and services that are not come under GST and are taxed
separately by the individual state Governments according to their previous tax regime.
Aerated drinks, luxury cars and tobacco products are few items where 28% GST is applied.
GST Council including the Finance Ministers of centre and all the states will govern the tax
rates, rules and regulations. GST is meant to replace a slew of indirect taxes with a federated
tax with an intention to reshape the country’s 2.4 trillion dollar economy.
The Dual GST model was implemented by GST council and the Government:
It is the components:

 CGST – Central GST

 SGST/ UTGST – State GST / Union Territory GST
 IGST – Integrated GST
CGST: CGST rate or Central GST rate is levied on the consumption supply of goods and
services, proceed of which will be attributable to the Centre, as per the CGST Act.

SGST: SGST rate or State GST rate is levied on the consumption and supply of goods and
services, the proceeds of which will be attributable to the States, as per the SGST Act- which
is passed and recognised by the assemblies of respective states.

IGST: IGST rate of Integrate state rate, also referred to as inter-State GST is levied on the
consumption and supply of goods and services, whenever such supplies are happening across
state boundaries and in terms of imports as per the IGST Act.
Applicability of CGST, SGST and IGST Rates

 CGST rate & SGST rate will be applicable on intra-state transactions

 IGST rate will be applicable on inter-state transactions.

 Sales within state are CGST+SGST.

 Sale to another state IGST.

Exempted GST Rate Slab (No Tax):

Regular consumption Goods and Services which include fresh fruits and vegetables, milk,
Butter milk, curd, Natural honey, flour, besan, bread, all kinds of salt, jaggery, hulled cereal
grains, fresh meat, fish, chicken, eggs, along with bindi, sindoor, kajal, bangles, drawing and
coloring books stamps, judicial paper, printed books, newspapers, jute and handloom, hotels
and lodges with tariff below INR 1000 and so on.

5% GST Rate Slab

Apparel below INR 1000 and below and footwear below INR 500, packaged food items,
cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza
bread, rusk, sabudana, cashew nut, cashew nut in shell, raisin, ice, fish fillet, kerosene, coal,
medicine, agarbatti, postage or revenue stamps, fertilizers, rail and economy class air tickets,
small restaurants and so on fall.

18% GST rate slab:

Pasta, biscuits, cornflakes, pastries and cakes, preserved vegetables, jams, soups, ice cream,
mayonnaise, mixed condiments and seasonings, mineral water, footwear costing more than
INR 500, sanitary napkins, notebooks, steel products, headgear and its parts, aluminium foil,
bamboo furniture, AC restaurants that serve liquor, restaurants in five-star and luxury hotels,
telecom services, IT services, branded garments and financial services and so on.

28% GST Rate Slab

Chewing gum, bidi, molasses, chocolate not containing cocoa, waffles and wafers coated
with chocolate, pan masala, aerated water, personal care items like deodorants, shaving
creams, after shave, hair shampoo, dye, sunscreen, paint, water heater, dishwasher, weighing
machine, washing machine, vacuum cleaner, automobiles, motorcycles, 5-star hotel stays,
race club betting, private lottery and movie tickets above INR 100 etc. have been clubbed
together and fall under this slab rate.

 Courier services, mobile phone tariffs, mobile bills, tuition fees, salon visits,
insurance premiums, banking charged a 15% service tax and will now fall under 18%
tax slab.
 Real Estate will also get expensive as it will now attract a GST of 12% as opposed
6%.

Changes that has brought after GST:

GST has removed the effect as the tax is calculated only on the value addition at each stage of
the transfer of ownership.
The indirect tax system under GST has improved the taxes as well as boosted the
development of Indian economy by removing the indirect tax barriers between states and
integrating the country through a uniform tax rate.

Advantages of GST
 Decrease in the value of goods.
 Technologically driven.
 Registration, return filing, application for refund and response to notice needs to be
done online on the GST Portal, which accelerates the processes.
 Lesser compliance.
 Composition scheme for small businesses.
 Regulating the unorganised sector.
 Defined treatment for e-commerce.
 Increased efficiency in logistics.

Disadvantage:
 Negative impact on real estate
 Major reduction in the number of tax layers
 Garments and clothes could become more costly.
 Effect on aviation industry.
 Service taxes on airfares double the tax rate.
 Adaption and migration to the new GST system has become trouble for learning for
entire ecosystem.
Criticism:
 Indian businessmen criticized the problem including tax refund delays and
documentation and administrative efforts needed.
 Opposition by congress party.

Assessable person under GST:

 The definition for Assessable person under GST is similar to the definition in the
existing service tax law.
 Assessable person includes all kinds of Legal persons also and not only natural
persons.

Effect of GST on Startups:

 Startups can enjoy tax credit on their purchases: A lot of startups are into service
industry i.e., they pay service tax. Under GST regime they can setoff the VAT paid on
the purchases (say office supplies) with the service tax on their sales which they
cannot under current regime.
 Less Difficult online Procedure under GST: The complete GST process beginning
from registration to filing returns and payment of GST tax is online. Now there is no
requirement for Startups to run around to tax offices to get various registrations under
Excise, VAT and Service tax.
 Simple taxation: Startups dealing with both goods and services will find it much
simpler to file and pay one GST tax instead of both VAT and service tax.
According to 22nd GST Council meeting of 6th October 2017

 Businesses with annual turnover up to 1.5 crores will submit quarterly returns. Taxes
will be paid quarterly.
 Due dates of Aug & Sep will be announced later.
 Switchover to quarterly will occur from Oct-Dec 2017 cycle.

This implies that the burden of tax compliance is considerably reduced for smaller businesses.
 Increased efficiency in logistics: GST will join India removing confinements on inter-
state movement of goods. This will bring warehouse consolidation across the Nation.
As a result of GST, warehouse operators and e-commerce players have already
shown interest in setting up their warehouses at strategic locations such as Nagpur,
which is the zero mile city of India and is well connected.
Reduction in unnecessary logistics costs will increase profits for startups involved in supply
of goods through transportation.
 Reduction in the taxation rate: According to the present VAT structure the business
with the turnover of 5 Lakhs need to enrolled under VAT and pay VAT. But under
GST the limit was upto 20lakhs exempting the small businesses including startups.
 There is also a special scheme called Composition scheme through which the turnover
between 20 lakhs and 1 crore has lower taxes.
 Tax burden for manufacturing startups: However, startups in the manufacturing
sector will endure the worst part. Under the current excise laws, only manufacturing
business with a turnover more than Rs 1.50 crore has to pay excise. However, with
the execution of GST, the turnover limit has been reduced to Rs 20 lakh thus
increasing the tax burden for many manufacturing startups.
Thus, GST is a completely new tax regime already taking India by storm. Businesses,
especially startups, will face troubleshoots in transition and application of GST.
 Company Profile:

AIC-Octospaces is an innovative coworking space incubation in Hyderabad. It is one the fast

growing company providing space for the startups. It is incubator hub for Health care and
Edutech. The tag line of the company is Idea, Innovate and Investors.
Incubation is its one of its main service.

AIC-Octospaces Incubator services Private Limited was incorporated on 12 June, 2018. The
company has 2 directors and no reported key management personnel.
It is basically the service providing company.
Rahul Reddy Nugur and Nirmala Devi Nugur being the directors of the company and
Devendar Reddy Nugur is the Executive Director of the company.
Partners:
 Public Health Foundation of India
 Centre for Cellular and Molecular Biology.
 Versaquant
 Soch
 Twinkle
Octopus being parenting company which has its services in 3 continents.
GST is charged by the company according its components i.e., CGST, SGST and IGST.
If the coworking company’s registered office is within the Telangana then company will
charge

 CGST-9%
 SGST-9%
Whereas the company’s registered office is other than Telangana then company will
charge
 IGST-18%
Statement of the Problem:
The main problem that is faced by the AIC-Octospaces is that some of coworking companies
that come for the rent sometimes may not registered address. So, there may be problem in
charging the GST.
The second problem is that the co-working companies mostly come into agreement only for
6-8months. So this may be problem for the company as it has find the clients to the company.

Need and Relevance of the study:

The need for the study is to know about charging GST at AIC-Octospaces and its
impact on the on the revenue of the company. How it is going effect the financial position of
the company. By this study we can come to know how the incubator hub is affected by
GST.
 Chapter-II
METHODOLOGY
OBJECTIVES
 To study the GST and its impact on Octospaces.
 To study how incubation help Octospaces to be exempted from Tax.
 To study the effect of policies of MEA or MSME or NITI Aayog in the free flow of
economy inside Octospaces.
 To study how financial assistance is given to incubates.
 To study the post-investment support given to an incubate.
 To effect of GST on Startups.
 To examine the client satisfaction regarding the pricing.
Methodology of the study:
Methodology of the study include Porter’s 5 force model.

Which includes the:

1. Bargaining power of Octospaces
2. Bargaining power of clients
3. Threat of New Entrants
4. Rivalry among the competitors
5. Threat of substitutes
Bargaining Power of Sellers:
There are different clients approaching the Company with different expectations. As
company’s main aim is to satisfy the clients for its long survival.
Octospaces being operated in the center in the city, enjoying the greatest advantage of it.
Even though they are having less demand then they have budgeted, the growth rate of the
company is increasing day by day.
The USP of Octospaces is that there are an incubation under Atal Innovation Mission which
is under NITI Aayog. They have the yearly planning commission of India effectively. They
are the only private Atal Incubation Center in Telanagana. Incubator provides all services that
are essential for startup.
As seller they expect the incubates to be innovative. They provide all the services including
financial, legal, Intellectual property rights.
Once they became the incubatee of Octospaces they have to be in contact and update weekly.
Incubatees enjoy the benefit of the priority by the Government as Octospaces is the only
Government funded Incubator operating in Telangana.
Incubates are:
 Ecoriti
 H-bots
 T-skills
 Stargaze
 Hi Rapid lab
 Just a sec
 Amaze infotainment

They have Coworking clients belonging to different industries which includes

1. MLR Agri foods
2. Haida Technologies,
3. Lalamove ,
4. College Dhunia,
5. T-skills
6. Amaze Infotainment
7. Landchecks
8. Spacestories
9. Fitness and Fairies
10. Digiclues
11. Listening and Training solutions
12. Lawyer
13. Tata Advsiory services
The price they charged is different for different clients depending upon the type of seat they
are selecting.

Types of seats:
 10seater cabin
 8seater cabin
 4seater cabin
 Seat in a private cabin
 Open seat
 Floating seat

Other than this they have conference rooms and meeting rooms where it can rent on hourly,
daily, weekly, monthly.
Mostly they adopt skimming pricing strategy so that it can attract the clients. The pricing is
different for different clients.
It also has tie-ups with GO Floaters and Sneed which act as middlemen between the buyer
and seller by taking commission.
The GST of 18% is charged on the clients on the price. But this allocation is done on the
basis client registration address. If the client’s company is other than Telangana then 18% is
charged under IGST which is the component of the GST.
If the client’s company is registered under Telangana then CGST 8% and SGST 8% is
charged on the price of the seat.
There is special privilege that is given to women entrepreneurs. They have registered under
companies act for enjoying the benefit.
The company will negotiate price that will be applicable for the tenure of 3 months. They
understand the need of customer and charged according to it. They also have some events that
are taken place in the space in the weekends which is one of the source of revenue.
Bargaining Power of the Buyer’s:
Incubatees are the primary service takers of Octospaces. The big clients including
Government, Health care and Edutech.
Coming to Coworking Spaces:
Buyers can buy the seats in two ways:
 Direct way
 Consultancy

The buyers who buy the seat in the direct way have the privilege negotiation. They can
directly talk to the company people and enjoy the benefit of price reduction so that it effects
the GST.
The clients approaching through consultancy may not have the advantage of negotiation.
They have to agree charges that are set by the consultancy.
Client may be through different ways the effect of GST is same on the company. But the
bargaining power of the customer may reduce the burden of cost and the amount of GST is
charged is also less.
Incubates enjoy the benefit of GST as the company become part of them.
Most of the clients are satisfied by the price that was set by Octospaces. The impact of
Bargaining power of the client will last for only three months. As the tenure of 3 months
completed the Original price that is setup by the company will be applicable.
An Incubate being an infant is kept in controlled environment for observation and care. They
have all the services provided by the incubator.
Coworking spaces enjoy the benefit special privileges and enjoy the tax benefits.
Threat of substitute:
This is the only private Incubator that is operating in Telanagana. So there does not exist
close substitute for incubation. The Coworking spaces are that it does not have so close
substitute. Company being the operated in the center of city and well equipped. So the clients
prefer to have space has the company has they have less cost burden when compared to have
own space.

Rivalry among the competitors:

In case of incubation, the direct competitor is T-hub. T-hub is the India’s largest incubator for
startups which is headquartered in Hyderabad, Telangana, India. It was formed on November
5, 2015. More than a competition it is contemporary.
Workafella is the competitor in case of coworking space located in Banajarahills established
on 3 March, 2018.
The competition is less when compared to other industry. The rivalry among the competitors
less.

Threat of New Entrants:

The threat of New Entry is always exists in this industry. A person with cash and interested in
investing can start an incubator hub.
Starting a coworking space is also easy. So there is always threat of New Entrants existed, but
that may take tenure of 2 to 3 years to face the competition.
DATA COLLECTION:
Primary Research: The data that is collected specially for the purpose of your project.
For the study: Interview and Observation are used for collecting data while conducting the
research.
Secondary Research: Secondary research refers to the data that was collected by someone
other than user.
For the study: The company’s website and Google is the main source for research.

LIMITATION:
 Time constraint: The biggest limitation of the study is time constraint. Because the
time that is given to conduct research is 4 weeks.
 Restricted to specific topic: Research is restricted to the specific topic i.e., the study
of GST and impact on Octospaces.
 Accuracy: Another limitation of study is Accuracy. All the respondents may not have
given accurate answer.
 Availability: It was very difficult to get contact with clients as they are busy.
 Limited to the company: The study is restricted to only one company.
 Chapter III
Strength, Weakness, Opportunities, Challenges of
Research
Strength:
 Knowledge about GST in service sector: The project is about GST and its impact in
Octospaces which is an incubator and Coworking space. As this is service providing
company the implementation of GST on its clients i.e., Incubatees and coworking
companies.
 Knowledge about slab rates: The study gives the clear information regarding the
goods and services with respect to the slab rates.
 Incubation and coworking spaces: The study gives the information regarding the
financial procedures regarding the incubation and coworking spaces.
 Negotiation skills: The study gives the negotiation skills from buyers and sellers
point of view.

Weakness:
 Repetition: There may be repetition of the information as the company procedure is
same.
 Reliability: The reliability about the Effect of GST and its impact about Incubation
and coworking may not be possible as different company have different pricing and
its effect is different.
Opportunities:
 More informative: There is an opportunity to collect more information regarding
the effect of GST due to time constraint.
 Collection of Data: There is chance of collection of Data but due unavailability of
all clients and incubates the data that was collected is less.

Challenges:
 Collection of Secondary Data: The challenge that is faced during study is
collection of Secondary data as the Internet was only the source of secondary data.
 Interacting the clients: As the clients are busy with the work there was challenge
with interacting the clients.
 Chapter-IV
OUT COME OF STUDY
The Effect of GST on Octospaces:
Octospaces being an Incubator hub, will be responsible for all the Legal, financial,
Intellectual Property Rights of an incubate.
Introduction of GST has made the Registration process easy which is mostly through online.
It has avoided a multiple stages of registration under New Taxation scheme through which a
new business can register easily.
So, this made Octospaces to complete his work easily and help incubates in the process of
registration as soon as possible.
When coming to coworking spaces, irrespective of industry the company will charged with
GST on the total amount.
It has become mandatory to upload Client invoices and make an e-way bill on a real-time
basis which has overburdened the Octospaces to focus on the tax compliance regularly which
ultimately affects the company’s innovative capability.
The effect of policies of NITI AAYOG in Octospaces:
According to NITI AAYOG a successful applicant will be provided with grant-in-aid to set
up AIC for the maximum period of 5 years upto 10crores which help to cover the capital and
operational expenditures
The applicant has to meet the cost components like
 Cost of purchasing land, construction of building, purchase of vehicles.
 Rental expense in case the applicant is an academic institution and the AIC is located
in the premises of the academic institution.
 Cost of hiring any external agency/consultant for developing the AIC operational
model or for conducting whole or part of the AIC operations. (AIM will assist the
AIC in developing the operational model based on global best practices and will
provide training to the AIC team).
 Cost of any fee paid to any external agency/individual(s) for the preparation of the
application for AIC.
As all the guidelines set by the NITI AAYOG was met by Octospaces, they received the
grant of 10 crores undergoing all the inspection and procedure undergone.
Incubation helping Octospaces for being a tax exempted
organisation:
Meeting up of eligibility criteria for Startup India:
1. Being incorporated or registered in India for less than seven years and for
biotechnology startups up to 10 years from its date of incorporation.
2. Annual turnover not exceeding Rs 25 crores in any of the preceding financial years.
3. Aims to work towards innovation, development, deployment or commercialization of
new products, processes or services driven by technology or intellectual property.
4. It is not formed by splitting up or reconstruction of a business already in existence.
5. It must obtain certification from the Inter-Ministerial Board setup for such a purpose.
6. It can be incorporated as a private limited company, registered partnership firm or a
limited liability partnership.

Octospaces has met all the eligibility criteria for meeting up the Startup India and this
made Octospaces to beneficial under the scheme.

Tax exemption allowed to eligible start-ups under Start-up India

programmes:
 3 years Tax holiday in the block of 7 years:
The startups that are incorporated after 1 April,2016 are eligible for getting 100% tax
rebate on the profit for the period of 3years in the block of 7years under the condition
that annual turnover does not exceeds 25 crores in a financial year. The main aim of
this scheme to help the startups to meet their working capital requirement.

Being Octospaces is a newly incorporated company this scheme is helping the

Octospaces for being tax exempted under this scheme.
Through this scheme the company is able to meet its day to day expenses without any
problem arising.

 Tax exemption on investments above the fair market value:

The Government has exempted the tax being levied on investments above the fair
market value in eligible startups. Such investments include investments made by
resident angel investors, family or funds which are not registered as venture capital
funds. Also, the investments made by incubators above fair market value is exempt.

As Octospaces being an incubator making the investment above the fair market
value which made them to exempt from tax and enjoy the benefits. It has made the
investments in Amaze infotainment, T-skills and 8 other potential incubates are under
Octospaces.
Analysing the Financial support given to incubates:
In general, incubator provide the financial analysis in four stages:
 Grants
 Debt
 Quasi equity
 Equity
Grants: Grants are most part gives to start-ups for product development, pilot testing,
research, etc.
Debt: Debt or loan is normally given when the startup needs to develop but does not want to
take up equity investments. The loan can also be a bridge funding for some start-ups.
Quasi–equity: It is category of debt that has a few features of equity in it. This is usually
given to those start-ups whose valuation is difficult to be ascertained.
Equity: Equity investments are done when the start-ups can be valued and have a high
potential to scale up.
Octospaces being an incubator it provide the financial assistance to incubate in the form of
Equity. It gives its priority to healthcare and Edu-tech.
Analysis Regarding the Post investment assistance to an incubate:
An Incubatee is like neo-infant which requires caring, pampering, guidance and support from
an experience guide.
Post investment assistance involves monitoring, value addition and fund raising.
Monitoring: This is the phase which requires continuous efforts from the company.
Octospaces provide its guidance through having a review meeting every week and having
information regard the needs and updates that an incubate requires.
Value addition: Octospaces provide the value addition to its incubate by giving priority.
Because this is the only Government funded private Incubation hub in Telangana. The
priority given by the Government for any solution will be Octospaces.
Fund raising: Octospaces has the capacity of raising fund and gives the complete assurance
regarding financial aspects of an incubate.
Analysis the effect of GST on startups:
1. Apply for tenders
Startups can apply for government tenders. They are absolved from the “prior
experience/turnover” criteria applicable for ordinary companies answering to government
tenders.

2. R&D facilities

Seven new Research Parks will be set up to provide facilities to startups in the R&D division.
3. No time-consuming compliances
Different compliances have been simplified for startups to save time and money. Startups will
be permitted to self-confirm consistency (through the Startup mobile app) with 9 labour and 3
environment laws.

4. Tax saving for investors

People investing their capital gains in the venture funds setup by government will get
exemption from capital gains. This will assist startups to attract more investors.

5. Choose your investor

After this plan, the startups will have an alternative to choose between the VCs, giving
them the freedom to choose their investors.

6. Easy exit

In case of exit – A startup can close its business within 90 days from the date of application
of winding up

7. Meet other entrepreneurs

Government has proposed to hold 2 startup fests annually both nationally and internationally
to enable the various stakeholders of a startup to meet. This will provide huge networking
opportunities.

Startups are being highly encouraged by the government. The benefits enjoyed by them are
tremendous, which is the reason why more people are showing interest in setting up startups.
If you are one of them, ClearTax can help you on your way.
Analysis regarding the satisfaction regarding the pricing set by
the company:
Customer satisfaction is must and should for any company to exist. Clients are satisfied with
the price that is applied to them. The prices that are set by the company are affordable and are
reasonable.
As the company charge different prices for different seats. So the customer can choose
according to the affordability and there accessibility.
The analysis was made directly by interacting with clients.
In case of incubation, the incubates are also satisfied with the services provided Octospaces
as it care about the financial aspects as well as legal aspects.
 Chapter V
Experience:
 Knowing about incubation process
 Knowledge about Coworking
 Interaction with different industries officials
 Knowledge about GST.
 Knowledge about NITI Aayog

 Knowing about incubation process:

As Octospaces is an Incubation hub I came to know about incubation process that is
undergone and what are the criteria that are consider by an incubator for an investing.
There are many criteria that are considered whiling investing into an start-up. The idea
should be innovative and that should be possible to implement. Octospaces mainly invest
in the healthcare and eductech which have innovation in there idea and beneficially to
society.

 Knowledge about Coworking:

Co-working is the bi-product of Octospaces. The coworking will help the advantage
of sharing the space that reduce the cost and this will increase the contact as they
coworking space will have different industries. Coworking space will consist of
meeting room which help the start up to have space along with all facilities.

Octospaces is a well equipped with good ambience operating in the centre of city
attracting the clients with price and other facilities.
 Interaction with different industries officials:
The company having different clients from different industries had an experience to
learn to about the different industries and working style of different industries.

Octospaces provided its spaces different industries which include transportation,

clothing, lawyer, education, hospital etc.
This has created a great experience regarding different industries and its operations.

 Knowledge about GST:

The study gave me the understanding about GST. How it going to effect the startups.
what are the limits for exemption of tax and tax benefits that are applicable for a
startup.

 Knowledge about Niti Aayog:

Atal Incubation Mission was started with an intention to give boost to the startups.
This study made me experience about the policies and its effect on the incubation
hub.
Knowledge the guidelines, grants and aids that are set by the Niti Aayog.

All this experiences made me to think about entrepreneurship.

Learning :
 Learned the negotiation skills
 GST and its impact
 Analytical thinking
 Communication skills.
 Financial procedure
 Roles and Responsibilities of an accountant

• Learned the negotiation skills:

I have learned the negotiation skills from both buyers and sellers point of view.
How buyer will negotiate in order to retain the customer and what will they expect
from incubates.
How customer will negotiate to have space with less price.

• GST and its impact:

Learned about the Goods and Service tax and how it going to affect different
startups in different industries. GST will have the affect the service industry. 18%
GST will be charged on the clients irrespective industry.
GST have the threshold limit of 20 lakhs for tax exemption.
It has made registration process and all the filing in an easy way. It has removed
the multiple stages for registration. This made the entrepreneur to boost their idea
and encourage them to start a new business.
This also provide them financial by some of the policies like 3 years tax holiday.
• Analytical thinking:
This study made me think in an analytical way in order to analyse the financial
procedures and how it is going to affect the organisation. Analysis of situation and
according is the main thing that is required to an Entrepreneur. Analysing the
financial models and implementing it according to the situation is one the thing
that I came learn during this study.

• Communication skills:
Communication does mean talking. It is conveying the thing to other person that is
understandable in the same manner as we are expecting.
Any business can survive for a long, if it has its proper communication with its
clients.
A Situation has made me to learn this.
• Financial Procedures:
This study made me learn the financial procedure that are undertaken in the
Startup. How they manage the working capital, portfolio management e.t.c.
Starting from Petty cash including budgeted payments, operating expenses to
purchases for long purposes.

• Roles and Responsibilities of an Accountant:

This study made get clear understanding regarding the roles and
responsibilities of an Accountant.
How careful he/she has to be while conducting the procedures and as person
belonging to a respectable position they have to justice to the role and profession.
 Conclusion
The Goods and Service Tax (GST) has been a tax reform that has taken place in Independent
India. This was implement with an intention to generalize the tax system and make it
unavoidable.
GST has created its impact in all the industries and made no distinction between goods and
services. It has the work simple and easy going procedures by removing the multiple stages
of registration.
The policies that are laid by the GST council and Ministry of Finance. Most of policies laid
by them have created an encouragement to the startups to buildup their ideas and proceed
further.
AIC-Octospaces incubator and services provider has impact by GST.
• Enjoying the benefit of newly incorporated company
• 3 years tax holidays
• Enjoying the Grants and aids provide under GST and NITI Aayog.
 Bibliography
 www.octospaces.com
 Cleartax.in
 Wikipedia
 Aim.gov.in
 Mca.gov.in
 Niti.gov.in
 Msme.gov.in
 Indian Journal of Finance.