The impact of GST on job creation

The study on “the impact of GST on job creation” covers 11 industry verticals including BFSI (Banking, Financial Services and Insurance), automobile, telecommunication, pharma, IT/ITes and e-commerce. According to the HR experts, jobs in taxation, accounting, software and other back-end processes will experience a huge boost. GST implementation strengthened the needs on the vision Make in India, Smart Cities, and Ease of doing Business, Skilling India and a healthy regulatory regime to create the volume of formal jobs needed for a 13 million youth who are joining the workforce every month. There will be 5 lakh new job openings in taxation, data analysis, finance and accounting.The implementation of goods and services tax could boost hiring by 11% across sectors.

The impact of GST

 

The impact of GST on various sectors:

●   Automobiles current growth rate is 9% and expected to grow 13% with the impact of GST.
●   Logistics current growth rate is 12% and expected to grow 16.5% with the impact of GST.
●   Home decor current growth rate is 12% and expected to grow 15% with the impact of GST.
●   E-commerce current growth rate is 16% and expected to grow 18% with the impact of GST.
●   Media&Entertainment current growth rate is 11% and expected to grow 14% with the impact of GST.
●   Cement current growth rate is 8% and expected to grow 11% with the impact of GST.
●   IT&ITes current growth rate is 11% and expected to grow 12.5% with the impact of GST.
●   BFSI current growth rate is 8% and expected to grow 10% with the impact of GST.
●   Consumer durables current growth rate is 10.5% and expected to decline 10% with the impact of GST.
●   Pharmaceuticals current growth rate is 14% and expected to decline 13% with the impact of GST.
●   Telecommunications current growth rate is 10.5% and expected to decline 10% with the impact of GST.
●   The formal job sector (such as automobiles, logistics, supply chain, e-commerce and cement) is likely to see a growth of 10 – 13% due to the GST reforms.
●   Sectors such as automobiles, logistics, supply chain, e-commerce and cement could see 11 – 18% in job creation.

Similarly, there will be significant job growth in retail, finance, banking, services and manufacturing sectors. All sectors, except Cement and IT / ITeS, are likely to create significant number of temp jobs. Blue Collar and Front End Sales roles are likely to be the main beneficiaries of this trend. The revenue collection from General Sales Tax will grow from the current 6.3% to 11.49%. Service tax, central excise and customs will also witness growth leading to greater funding towards workforce welfare and sustained job creation initiatives.

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