Goods & Services Tax (GST) is an indirect tax throughout India to replace taxes levied by the central and state governments. It is introduced as The Constitution (One Hundred and First Amendment) Act 2016, following the passage of Constitution 122nd Amendment Bill. The historic tax reform, to be rolled out from July 1, is expected to help the formal job sector attain an annualized growth rate of 10-13 per cent and fuel demand for professionals in various segments of the economy.
The job market is looking forward to a big boost from the new GST regime and expects over one lakh immediate new employment opportunities, including in specialized areas like taxation, accounting and data analysis. It will create more than one lakh jobs immediately from the first quarter of the implementation date and another 50,000-60,000 jobs will be created for specific activities for GST. GST is expected to create significant job opportunities as the businesses will need to hire professionals for dedicated GST management, up gradation and reconciliations. Sector-wise, the immediate high-impact segments of GST are expected to be automobiles, logistics, home decor, e-commerce, media and entertainment, cement, IT and ITeS, BFSI, consumer durables, pharma and telecom.
Startups works on developing enterprise automation platforms to help SMEs and startups in the B2B and B2C space eradicate the manual process of tax filing and invoicing, using technology like business intelligence and machine learning. They are launching a service that works on automation of tax filing and invoicing, GST is now their new area of focus. Number of companies that have developed GST-related software have also applied to be a GSP that would help companies connect its software directly to the GST Network. Some companies released a ready-to-use GST solution that offers services like reconciliation with vendors, tax validation engine, input service distribution, TCS for e-commerce, preparation of all GSTRs, vendor analytics and more. While India’s largest companies may have their own legal and taxation teams to handle the transition, the opportunity really lies with medium-sized and small businesses. GST software allow SMEs to create sales invoice, discount recording, freight, insurance, and also package handling charges along with recording purchases and expenditure under GST regime.
Nearly one per cent of large companies require five people to handle GST-related issues, and 10 per cent of midsized firms need at least one person to handle GST, the revolutionary tax regime may create demand for 1.3 million jobs. While existing workforce can handle some of the clauses of GST, the need to hire new talent is being mulled significantly, as per experts. It has come to light that the GST rollout would create a pool of jobs for lawyers, chartered accountants, cost accountants. On the technology front, companies are also scouting for software professionals to ensure smooth transformation and synchronization with government databases.
There has been an upsurge in indirect tax openings across the corporate sector and we see various positions such as GST manager, VP-GST, or GST team leader coming into vogue. While indirect tax function in various businesses has existed in the past, what we are witnessing now is not merely a rechristening of indirect tax as GST, but also the emergence of new positions amongst corporate.
However some companies feel there will be a positive impact in the long run. With GST you have to be legit, there is no two ways about it. With its roll-out, those who are not already on digital platform will adopt it. And we will be at the forefront. Over one lakh immediate openings are expected to be created, including in specialized fields like taxation jobs, accounting jobs, and data analysis.