10 Sep How GST Implementation Will Help To Increase Employment in India

GST is the largest tax reform of India in 2018. It is an indirect tax levied on the consumers for the consumption of goods and services, the manufacturers for the manufacturing of goods, and on the sellers for the sale of goods. It has now become compulsory for a Businessman to acquire the GST Identification Number in every state they are registered in. GST has reduced all tax bias against the manufacturers and the sellers. It has successfully played a significant role in the employment sector by increasing the number of Jobs in Lucknow.

Carpenters, Masons, and Plumbers on Demand

Earlier the Semi-skilled such as Plumbers, Carpenters, and other semi-skilled persons even though they were a part of the company and had been serving the company in one or the other way, but the company papers would never show them as actual employees.

This particular scenario has completely changed these days. One of the Job Placement Agencies in Lucknow has stated in its view for the GST implementation that nowadays it has become very easy for the companies to carry on their work smoothly after the GST implementation and their cash flow is not getting affected. Studies have proved that such interesting tax implementation will help the Government to keep a vigil look on the payment structure of the semi-skilled employees which the companies earlier could run away without paying.

Bright Futures of Commerce Graduates

A graduate from the commerce stream had nothing more than a graduation certificate which moreover had no value in the employment sector. Further studies had become an important part of everybody’s life as even with an undergraduate degree there were no job openings. It has been found in a study that only after the GST implementation did job Placement Agencies in Lucknow start hiring b.com graduates and this way GST way has been playing an important role in helping finance professionals acquire a bright future and help them get a job worth their qualification. There has been a 13% increase in Jobs in Lucknow on account of GST.

Easy Credits to Hit the Company Liquidity

Insufficient capital and lack of credit money lead to a limited growth of companies and hence employment opportunities also could not expand. There were various companies earlier that wanted to outsource many jobs but were incapable due to lack of credits. But after GST implementation the companies are now able to avail credit helping them to outsource their jobs conveniently.

Hence the Job Placement Agencies in Lucknow is looking forward to a huge boost from the new GST regime implemented.

The implementation of the Goods and Services Tax (GST) in India can potentially contribute to increased employment through several channels:

1. Simplified Tax Structure: GST replaces multiple indirect taxes with a single tax, streamlining the tax structure. This simplification reduces the compliance burden on businesses, especially small and medium-sized enterprises (SMEs). With reduced bureaucratic hurdles and paperwork, SMEs can focus more on their core operations, potentially leading to expansion and increased hiring.
2. Boost to Manufacturing and Logistics: GST aims to create a unified national market by eliminating inter-state barriers to trade. This facilitates smoother movement of goods across state borders, reducing transit time and costs. As a result, businesses may expand their operations, invest in infrastructure, and set up new manufacturing units or warehouses in strategic locations, leading to job creation in sectors like manufacturing, transportation, and logistics.
3. Formalization of the Economy: GST incentivizes businesses to operate within the formal economy by providing input tax credits and enforcing compliance through digital platforms. As more businesses become compliant, the size of the formal sector expands, leading to increased job opportunities. Moreover, formalization discourages tax evasion and promotes fair competition, which benefits compliant businesses and encourages them to expand and hire more workers.
4. Promotion of Services Sector: GST treats goods and services uniformly, eliminating the previous tax bias against the services sector. This parity encourages the growth of service industries such as IT, tourism, hospitality, and financial services. These sectors are often more labor-intensive than manufacturing and can generate significant employment opportunities, especially for skilled and semi-skilled workers.
5. Stimulating Investment and Entrepreneurship: The rationalization of tax rates and elimination of cascading taxes under GST make India a more attractive destination for both domestic and foreign investment. Increased investment leads to business expansion, innovation, and the emergence of new enterprises, all of which contribute to job creation across various sectors of the economy.
6. Development of Supply Chains: GST facilitates the integration of supply chains by enabling seamless movement of goods across the country. This integration encourages the development of supplier networks and ancillary industries, which in turn create employment opportunities at various levels of the supply chain, from raw material suppliers to distributors and retailers.

Overall, while the immediate impact of GST implementation on employment may vary across sectors and regions, the long-term effects are expected to be positive, fostering economic growth, formalization, and diversification of the Indian economy, ultimately leading to increased job opportunities for the workforce.