GST, the biggest economic reform since 1991, is likely to sail through in the Lower House.
By: PTI | New Delhi | Published:August 7, 2016 4:37 pm
GST rollout across the country will improve ease of doing business and encourage industries to expand their operations, which in turn will help boost job opportunities, experts say.
The Make in India initiative will get a significant boost as companies would be able to create manufacturing and industrial hubs across the country as GST would break the barrier of state tax regulations.
“Passing of GST in a single stroke will benefit both corporates and the economy. It will pave the way for significant job creation across most domestic consumption driven sectors,” Rituparna Chakraborty, co-founder & Executive Vice-President, TeamLease Services, said.
Under the new indirect taxes regime, which is likely to take effect from April 1, 2017, levy on manufactured goods will come down while consumers may end up spending more as service tax burden would go up as GST is a consumption-based tax.
“The uniformity of tax structures will open up markets beyond favourable territories, lead to expansion of services, capacity and product range. It will also lessen protectionism amongst states and lead to more innovation,” Chakraborty said.
The industries that will spur job creation immediately are consumer goods/FMCG, media, auto industries, cement and logistics, she hoped.
“For initial 1-2 years, a lot of accounting and training companies will also be able to create job opportunities specialising in implementation of GST,” executive search firm GlobalHunt MD Sunil Goel said, adding that sectors like manufacturing, FMCG, e-commerce, telecom, automotive and media will be major ones to benefit and will generate more jobs.
Meanwhile, the GST Bill will be taken up by the Lok Sabha on Monday, with virtually all political parties backing this legislation.
GST, the biggest economic reform since 1991, is likely to sail through in the Lower House. It will replace a raft of different state and local taxes with a single unified value added tax system to turn the country into world’s biggest single market.
“We are looking forward to implementation of GST which will help improve ease of doing business and India’s GDP. India’s growth will continue to expand its economy and create opportunities for its workforce,” Rajiv Burman, Human Resource, Kronos India and Senior Director and Head (human resources) APAC, said.