GST Brings in more job opportunities in the long run - Brijesh Lohia, MD, Global Ocean Group
Goods and Service Tax (GST), which is proposed to be implemented from July 1, 2017, is expected to add momentum to the entire hiring procedure in various sectors. It is aimed at creating a single, unified market that will benefit both corporate and the economy.
Recent report clearly state that the GST is likely to create about 1 lakh immediate job openings in the country helping the job sector witness an annual growth of about 10 % to 13 % and increase the demand for professionals in various sectors of the economy. Apart from GST bringing in numerous benefits and lowering the burden for the common man, the increased production will lead to more job opportunities in the long run. Logistics and E-commerce will create jobs fastest, with increase in demand, scale and profitability. GST is expected to craft out nearly 50,000-60,000 new jobs in the industry in the areas of, logistics data management as well as e-commerce.
Brijesh Lohia, Managing Director from Global Ocean Group said, “GST seeks to eliminate cascading effect of taxes in our current tax system. The implementation of GST will not only have a positive impact on the ease of doing business, it will propel formal job creation. Lower prices will increase demand which will lead to increase supply. Hence, rise in production of goods. The increased production will lead to almost 1 lakh bright job vacancies across various segments with a remarkable number of job opportunities in logistics industry in the long run. Logistics is likely to be the main beneficiary of this trend in terms of hiring manpower”
Research says that GST bill is expected to trim the logistic costs upto 20% from the current level. India being emerging country with prime dependency upon transportation through land, i.e. through rail and road together which contributes about 60% followed by Warehousing 24.5% compromising industrial and agricultural storage. The savings on logistics by fast-moving consumer durables, logistics companies and e-commerce companies will result in greater investment by them towards employment generation. The new taxation process will insure invoicing at each stage by the supply chain and business to avail the tax credits which will mean a further flip to digital and official economy leading to employment by logistic companies.
@EPC World Media Group