Growth in jobs post GST implementation
A lot of jobs will be rolled out in logistics, home decor, e-commerce, media and entertainment, cement, IT and ITeS, BFSI, consumer durables, pharma and telecom
BY ARPIT MATHUR
2017 has been an action-packed year, with a bag load of proactive measures being executed, much to the respite of the common man. GST is an excellent step taken by Government of India, as a one tax for one country.
2017 has been an action-packed year, with a bag load of proactive measures being executed, much to the respite of the common man. The present government led by Prime Minister Narendra Modi, known for its reformative approach, aims to usher in further transparency in economy through measures such as Goods and Services Tax (GST).
GST is an excellent step taken by Government of India, as a one tax for one country.
GST refers to goods and services tax and in simple definition, it means value added tax or VAT on not only the goods, but also the services. The unification of the taxation bracket shall take place through mergers of a variety of other taxes such as entry tax, entertainment tax, passengers’ tax and so on.
Here are other salient benefits of GST:
- Expands the range of tax base
- Lesser distortions due to a wider input tax credit
- Amplified aggressive spirit for exporters, through reduced domestic taxes
- Farewell to the inter-state sales tax, helping enhanced regional equity
- Exclusion of inter-state trade snags, creating a nearly perfect national market
- Creating an enhanced economy emboldened by transparency and quality
- Creating a progressive space for jobs to thrive, as a result of the newly empowered economy
Space for creation of jobs
The implementation will not only have a positive impact on different sectors but will ease of doing business in India; it will propel job creation as investors from across the globe will now invest in India. As per a recent study, implementation of GST will successively result in an 11 per cent increase in hiring across sectors. From a regional perspective, South India will top the job generation chart, with a narrow margined competition by the north.
The subsequent uniformity in the burgeoning of average tax, presented by GST, will offer a significant impetus to creation of employment. The certainty of cost of product/services delivered across the country will automatically augment enterprise productiveness. The efficacy of GST will also activate an unprecedented extension of services, capacity and product ranges, ensuing a succeeding swell in manpower requirement.
A sector-wise rise, through GST
The GST regime, according to predictions, will result in a rise towards double digit job creation across sectors, a point that comes as an early hurrah to job seekers of the nation.
A lot of jobs will be rolled out in logistics, home decor, e-commerce, media and entertainment, cement, IT and ITeS, BFSI, consumer durables, pharma and telecom. The sectors that hold significance for job creation in a prolific post GST-implementation era are automobiles, logistics, home decor, ecommerce, media and entertainment, and cement, set to witness 11 per cent – 18 per cent rise in jobs per year, while IT, ITeS and BFSI would hold a rise between 10 per cent and 12.5 per cent. Finally, consumer durables, pharmaceuticals and telecommunications jobs will see a rise between 10 per cent and 13 per cent.
E-commerce and logistics, known for their rapid jobs creation, will see an enhanced growth with an increase in demand, scaling and productivity. For initial 1-2 years, a lot of accounting and training companies will also be able to create job opportunities specialising in implementation of GST.
Temporary hiring, section that has come of its own in the recent years, will receive further backing as it is set to obtain a big boost during the GST regime. In respect to the boost, all sectors, except cement and IT/ ITeS, are expected to create major number of temporary jobs.
The unorganised sector will now shift to organised which will again create job opportunity. Blue collar and front end sales positions are likely to be the main beneficiaries of this trend, bringing much relief to the corporate sector.
A detailed study states that GST will improve the revenue of the exchequers, as well. The proceeds collection through general sales tax is set to grow from the current 6.3 per cent to 11.49 per cent. Subsequently, service tax, central excise and customs will observe a high development, leading to bigger funding towards workforce welfare and persistent job creation schemes.
Although, the first quarter may be a little slow post GST rollout, it will pick up its pace soon. In short, not only does GST enhance the frame work of monetary transaction that the citizens come across in their daily lives, it also sets to enhance their rate of bagging the occupation of their choice. This path breaking reform rewards inhabitants of India in more ways than it was expected and with time, we will witness the extant till which GST can simplify our lives.
(The author is the Founder of KaamKaaj.com, an online portal for blue collar job seekers)