Over 1 lakh jobs are immediately expected in India as the new Goods and Services Tax (GST) comes into effect from July 1. These jobs are also expected in specialised sectors such as taxation, accounting, and data analysis. The tax reform is likely to help the formal job sector get an annual growth rate of 10-13 percent. “We are expecting an annualised growth to the tune of 10 -13 percent in formal job creation on account of GST,” Indian Staffing Federation’s President Rituparna Chakraborty said.
Chakraborty also added that with GST, procuring and distributing goods will get much faster. A greater transparency is likely to push India towards more formalisation.
As per executive search firm GlobalHunts MD Sunil Goel, it is estimated that GST will create more than one lakh jobs immediately from the first quarter since the time when it is implemented. He also added that another 50,000-60,000 jobs will be created for specific GST activities. It is also likely that mid and small-sized companies may prefer outsourcing of activities to third-party account firms.
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With changes in the taxation system, GST is likely to create jobs as business houses will have to depend on professionals for managing, upgrading and for reconciliations of GST. Monster.com’s APAC and Middle-East MD Sanjay Modi said: “The new tax system will have a positive impact on ease of doing business, thereby making it conducive for foreign investors and companies. This would help in a better execution of all government initiatives and propel formal job creation.”
The implementation of GST is likely to impact most in sectors like automobiles, logistics, home decor, e-commerce, media and entertainment, cement, IT and ITeS, BFSI, consumer durables, pharma and telecom. In all these sectors, it is likely that hiring will increase significantly.
The transition into the new tax regime however, may slow down the process. Though experts say that if the process eases out, the hirings will have a positive impact in the long run.
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