Finance Minister Arun Jaitley said that the country needs the better implementation of the GST by September 2017 as the implementation would create jobs in large scale. The implementation of GST has increased the jobs in the formal sector such as automobiles, logistics, e-commerce and cement. E-commerce and logistics have created maximum job due to more demand while the cement industry is expected to create jobs due to high profitability rate. According to a study done by a staffing firm named TeamLease Services, the passage of GST bill will see growth in the job market and the single-tax system will play a vital role. The firm suggested that there will be 11-18 percent of additional jobs per year in the above-mentioned sectors.
GST (Goods and Service Tax), is a new tax regime for current taxation system of India. But the important issue is what impact it has done on Indian economy after GST became applicable in India? What is new in GST which helped to us for creating a better Indian economy? What is the impact on jobs, inflation etc.? There are lots of questions which are still not answered anywhere and here we can just hope for the better India after this biggest change in the taxation system.
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In past scenario, there were lots of loopholes in indirect tax laws. The loopholes had increased tax evasion and black money in India and in the result of this, inflation rate became high and the differences between the rich and the poor were increasing day-by-day.
After implementation of the new tax regime, the possibilities of job expansion in the Indian economy has increased as the GST is a promising opportunity which has implemented from July 1 this year. According to the sources, companies appointed accountants and tax consultants for a better approach towards the GST. However, GST has been considered fruitful to the financial professionals and also demanding around one lakh tax consultants as soon as possible.
Accordingly, various other sectors like e-commerce, retailing, manufacturing, services, logistics, supply chain, banking and financial sector will see a substantial rise in the job opportunities in the upcoming season. Also, the major part of the development is handled by the IT companies preparing GST software as the IT sector is playing a significant role in expanding the GST around the nation.
GST has tried to increase the transparency in transactions and GST return systems, while there are some provisions like as per sellers sales register in purchaser’s purchase registers entry will do automatically and that’s why no manipulation in the transaction is possible and it will help to reduce the black money and tax evasion in GST.
After GST, as supposed that it would help to increase in new job opportunities. Currently, our country has the largest population of the world and the biggest problem here is the unemployment to the educated and skilled persons. After application of GST, the business process became easier and the expansion of business is possible. As well as GST has increased the new business plan and motivated the new businessmen to take new initiative regarding business and consequently, the jobs and self-employment have increased in India.
Again GST represents a good image of India across the world. Many countries already incorporate GST to their states and there is a pressure of different countries up to India that GST should applicable here successfully and after GST application to India, the working environment for companies must be much friendly. So that multinational companies come here and do their business without any difficulties. We can say that GST will attract multinational companies to come here and it will help in increasing jobs.
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The Indian service and job arena have vast opportunities for the young generation, as the GST accommodates most of the working class population and job seekers into a well-designed approval. The GST is very ambitious in setting up job maximization and has also invited many global companies as a proposal in Foreign Direct Investment. The domestic demand has shown the growth after the GST implementation and this also has increased the job chances to soar high as the domestic demands have the tendency to fluctuate in various aspects and can generate a high frequency for the working force to indulge and take the services and increase the demand towards the completion.
As GST is a new law and lots of people are not much aware of this so it is the possibility that the people who know about GST can be in demand for companies so they can help for better tax administration for the corporate sector.
Haryana Government’s Initiative To Grant GST Related Jobs
Haryana Government has announced that B.com and M.com passed youngsters will get jobs due to GST. Under ‘Haryana Yuva Saksham Yojana’, the government will try to provide training in GST to registered B.com and M.com pass-outs and operate them in the field. This move definitely helps the traders and businesses to file GST return easily.
The training of registered youth will initiate from 15 December. In the first step, Haryana Vishwakarma Skill University (HVSU) will be providing skill training for 18 days. Under this scheme, around 75 GST master trainer and 1000 GST accountants will be prepared to help the businesses in GST filing. Haryana’s Minister for Industries & Commerce, Environment and Industrial Training, Vipul Goel said that it is an opportunity for B.com and M.com graduates and it will help in providing skilled staff in the industrial sector.
He further said that in upcoming time, Haryana will be no. 1 state in providing skill development training and generating employment opportunities. Haryana is continuously signing the MoU with skill development universities and industrial units. He mentioned that apart from generating the opportunities for Haryana’ youths, the Haryana government is ready to collaborate with other states to help in providing skill development and training initiative.
The skill development universities will soon be providing training to ITI passed youths to do graduation and post graduation also. Haryana is the first state who has formed skill development university. To make the career of youth, the government will put full efforts and establish it as an ideal university.
Demonetization And GST Impact On Job Creation
There is a huge gap in labour factor considering males and females. India has the lowest proportions of working females which are 26% in the world. The data doesn’t show any change after GST and demonetization as well.
Further, the household survey shows that men (ageing 22-25) have no option than to work. Therefore, India has a very low unemployment rate which is 3-4%.
On the other hand, many feel that they can’t get desired jobs here. As thousands of workers apply for a low-level government job for job security and benefits; end with the disappointment of the typical workers.
It is also true that demonetization and GST decreased the jobs in the informal sector which consist many Indian employees. Many were fired in a shortage of cash payment after demonetization. Further, it created the way for formal jobs. The addition of GST as well gave shelter to GST payers. Slowly, GST will remove the small informal firms and move to formal one which will surely create more jobs for people. Alongside, they will also get the benefits of job safety and benefits in the formal sector.
