GST Expected To Add 1 Lakh Jobs; But Why Retailers Are Refusing To Buy Fresh Stock From Companies?
There is finally some good news, related with job creation in India.
As per initial vibes received by recruitment agencies and Staffing agencies, it seems that GST can be a trigger to create more jobs in the coming days.
As per various estimations, GST will create around 1 lakh jobs immediately, across sectors such as automobiles, logistics, home decor, e-commerce, media and entertainment, cement, IT and ITeS, BFSI, consumer durables, pharma and telecom.
How GST Will Create Jobs in India?
There are mainly two ways GST implementation across all industries will create jobs in India:
a) Once GST is implemented, more and more unorganised sectors will transform into organised sectors, thereby triggering job creation as informal skills would be less in demand. Indian Staffing Federation’s President Rituparna Chakraborty said, “All these and the transparency of compliance shall make working with unorganised players exponentially less attractive thereby pushing the country towards greater formalisation,”
As per Rituparna, GST will enable an annual growth rate of 10-13% in job creation, across India.
b) Jobs would be created in the fields of accounting, finance and business administration, as more and more businesses adopt GST, and function smoothly. In areas such as taxation, accounting and data analysis, the need for skilled GST experts would be in high demand, for the next 3-4 years.
GlobalHunts MD Sunil Goel said, “On an estimation, it looks like it will create more than one lakh jobs immediately from the first quarter of the implementation date and another 50,000-60,000 jobs will be created for specific activities for GST, going forward.”
But Retailers Are Refusing To Buy Fresh Stocks Due To GST
Latest in this regard is the FMCG companies, which are claiming that retailers are refusing to buy stocks, in fear of GST.
As per some insider news received, retailers want companies to protect their margins post GST, and this tussle is leading to losses for FMCG companies.
Britannia’s managing director Varun Berry said, “Educating over 4.5 million retailers is a significantly big task and there is confusion among the trade about buying fresh stocks now,”
As per analysts, for a short term, there may be a shortage of products on shelves across hypermarkets and kirana stores, as retailers have activated a wait and watch mode right now.
Marico managing director Saugata Gupta said, “There is a significant thinning of the inventory pipeline since a lot of the trade is not buying new stocks just ahead of GST”
We will keep you updated as we receive more inputs on this on-going tussle between retailers and FMCG companies.