Moneycontrol
Last Updated : Jun 30, 2017 06:25 PM IST | Source: Moneycontrol.com

GST expected to add more jobs in a whole host of sectors

With an aim to bring several industries into the organised set-up, human resource experts are expecting a surge in both temporary as well as permanent workforce.

M Saraswathy @maamitalks

While corporates are still struggling to meet the deadline for the Goods and Services Tax switchover (GST), new jobs are expected to be added in thousands once the new regime kicks in. With an aim to bring several industries into the organised set-up, human resource experts are expecting a surge in both temporary as well as permanent workforce.

Rituparna Chakrabarty, Senior Vice President, TeamLease Services, said that GST will ring in good news for employment.

“There will be a rise of both temporary as well as permanent staff. Post GST new job creation will be in the area of sales, logistics and customer service. There is a possibility of an increase even in the manufacturing sector. Overall, job creation will increase the pie in terms of the formal jobs,” she added.

For junior positions like store attendants and shop floor assistants, temporary staff could be hired based on the sale season and the average footfall in the stores.

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Lohit Bhatia- Business Head, IKYA Human Capital, said that the GST rule which makes invoicing mandatory at each stage so that businesses can avail inputs tax credits will mean a further boost to digital economy.

This, he said, would lead to higher declaration of income, turnovers, and profits leading to increased taxation and employment by these companies.

“On an immediate basis our understanding is GST shall contribute to a direct employment of lakhs of youth in IT and finance side to create systems to enable over 800,000 companies for GST rollout and invoicing,” he said.

Bhatia also said that the savings on logistics by the FMCD, FMCG, logistics companies and e-commerce companies will result in greater investment by them towards employment generation.

There have been four rates of tax for GST which have been fixed at 5,12,18 and 28 percent. Goods like branded apparel whose rates of taxation have been lowered could see prices showing a decrease thereby increasing sales. This, said HR experts, would lead to higher volume generation that would encourage retailers to hire more staff.

Further, lawyers and tax consultants have also been in huge demand over interpretation issues over which item will attract what rate of tax.

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First Published on Jun 30, 2017 03:44 pm

tags #Economy #GST

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