To the government, the Indian staffing Federation questioned to lessen the goods and services tax on staffing firms with respect to 18% to 5% as well as seeking separate industry status for the sector to assist them alleging specific privileges.
“Staffing companies generate employment and in a majority of the cases, these are low-level jobs with average salaries of under Rs 18,000. So in line with the philosophy of the GST council 
A low tax rate is to be done with 0.05% said by ISF to the government for staffing the companies as it will help the procedure of application and remove the hurdles which are raised in between the refunds because of the type of the business inside the staffing industry.
“This will save cash flow problems for the staffing industry and the government will save time and adjustments,” commented Bhatia. According to him, the existing TDS rate is 2% that is to be decreased to a 0.05% rate.
Moreover, Bhatia declared that there is a requirement to acknowledge staffing a unique industry instead of being a part of the professional services. “This will allow staffing companies to seek certain privileges keeping in mind the low margins and high cash outflow that they make when compared to other professional services companies.”
Indian staffing Federation is the highest body that Flexi staffing firms build to give a platform for acknowledging employment, work choice, even compensation, social security, and health benefits for the short workforce; that forms a sizable section of India’s total workforce.
ISF avails “over 100 federation members have so far generated employment for over nine million employees over the last 10 years and currently employ over one million flexi staff annually.”
