GST is not only going to ease business and attract foreign investments but is also going to create jobs in the economy. According to the media reports, implementation of GST would open up 1 lacs jobs in the future as corporates rush to hire specialists to help them in the process.
According to the reports, the GST is expected to help the formal job sector attain an annualized growth rate 10-13 percent in the long run. The Indian Staffing Federation President, Rituparna Chakraborty, has been reported as saying that profitability would increase as the procurement and distribution of goods would become much faster, also cash flow will become more predictable.
"We are expecting an annualized growth to the tune of 10 -13 percent in formal job creation on account of GST," Rituparna Chakraborty said.
- Automobile, logistics, home decor, hiring, ecommerce, and cement would create 11-18% additional jobs per year
- Information technology and BFSI would create 10-12.5% additional jobs per year
- Consumer durables, pharmaceuticals, and telecommunications would create around 10 to 13% additional jobs per year, which is a decrease from previous years.
Apart from the above, temporary hiring is going to see a major boost with the implementation of GST in all sectors except Cement and IT. Also, the report highlights, that the above three sectors which will see a drop in job creation, it would be because of the increase in the price of the goods.
Benefits provided by GST
In the report, it is also mentioned how GST would provide the benefits
- Will help in achieving economies of scale
- Lower costs
- Enable creation of multiple factories across locations
- Help develop the distribution network
All of these factors would actually help the companies streamline their processes, and also with the added benefit of consistent and predictable cash-flow, most industries would be in a position to understand their own hiring requirement, and which is why GST, as expected, would boost hiring in the future.
Also, Rituparna Chakraborty, pointed out in the media report, "All these and the transparency of compliance shall make working with unorganized players exponentially less attractive thereby pushing the country towards greater formalization.”