While the government has not released any official statement on the jobs that will be created by GST, human resource consultants believe that between 2,00,000 to 3,00,000 jobs will be created in the next two to three years.
The Goods and Services Tax (GST) regime is expected to create almost 300,000 new jobs in the industry in the areas of compliance, data management as well as logistics. GST as a new tax structure will be implemented in the country from July 1.
While the government has not released any official statement on the jobs that will be created by GST, human resource consultants believe that between 200,000 to 300,000 jobs will be created in the next two to three years.
Lohit Bhatia- Business Head, IKYA Human Capital said, “On an immediate basis, our understanding is that GST will contribute to a direct employment of lakhs of youth in IT and finance side; to create systems to enable over 8,00,000 companies for GST rollout and invoicing.”
He added that the savings on logistics by fast-moving consumer durables, fast-moving consumer goods, logistics companies and e-commerce companies will result in greater investment by them towards employment generation.
GST is a mammoth tax reform that has been cleared by the GST Council that had representatives from every state. This include subsuming several local taxes, service tax and value-added tax under one holistic rate of taxation.
On one hand, while several jobs are being lost in sectors like IT and telecom, consultants expect that many more will be created due to GST. A large mass recruitment company said that a big chunk of the demand has started coming from public sector entities who do not have the requisite manpower to deal with the technology upgradation and movement to a new system.
It is anticipated that the need to make cash-based payments will be eliminated and a complete system for digital payments will be enabled. This will require individuals who are well versed in payment technologies and machinery to be hired by organisations.
Bhatia also said that the necessity of GST to require invoicing at each stage by the supply chain and business to avail the cenvat or inputs tax credits will mean a further flip to digital and formal economy. He said that this would lead to higher declaration of income, turnovers, and profits leading to increased taxation and employment by these companies.
Institutes, which offer niche courses in banking technology and payments, are expected to see a surge in demands from recruiters as also traditional technology strong institutions like Indian Institutes of Technology, Indian Institutes of Information Technology and National Institutes of Technology.Over and above, smaller companies which had about 3-4 members in their tax and compliance teams are also expected to expand their team sizes giving opportunities to new graduates and chartered accountants.The Great Diwali Discount!
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