Another sunshine sector, thanks to GST

Another sunshine sector, thanks to GST

Goods and Services Tax word on paper sheet and currency . Financial concept.GST

July 2017 witnessed the introduction of the Goods and Services Tax, a revolutionary tax reform with far-reaching consequences. A lot has been said about the positives and negatives of the reform, and as people become more familiar with the new tax regime, the outcomes of its implementations are being closely watched by all.

The rollout of GST was estimated to create a business opportunity of around $1 billion for the IT industry, a necessary boost for a domain which was experiencing a fall in growth for a few years now. A major section of the billion-dollar opportunity has revolved around robust accounting structures and systems.

The creation of enterprise resource planning packages has been a big thrust area, especially for small and medium level enterprises that are in desperate need of affordable solutions for transitioning to the new system. Skill training to familiarise the new range of software solutions to the existing human resource is as important a focus area as providing skilled resources to a large number of businesses that now fall within GST.

Therefore, one of the key highlights of this financial transformation is the growth in the job sector of accounting, taxation, and inventory management. More than one lakh job opportunities have been created ever since the new tax policy was rolled out. Second, the wide spectrum of businesses and economic activities that the system has encompassed within its folds necessitates the addition of a skilled workforce and opens up employment opportunities.

Job creation factors 

The sharp rise in jobs in the domains of accounting, taxation and inventory management is a result of more than one factor. Today, more skilled persons are required to manage tax filing and to ensure accurate inventory management in compliance with new tax laws.

Widening spectrum of business activities under tax net: The new tax net covers a wide array of businesses which are not required to pay tax or were involved in tax avoidance. With the advent of the new tax regime, these enterprises have to file their taxes, thereby creating more avenues of employment in the field of taxation. The massive number of business enterprises functioning under the unorganised sector has come into the fold of direct taxation; it has led to high requirement of qualified professionals for this purpose.

Transparency in business operations: With India going digital, and the new tax regime mandating online tax filing, there is more focus in managing inventories accurately, in timely and precise payment of taxes, and in compliance of the stated laws. Digitisation of these processes has pushed all goods and service providers as well as experts in accounting software to follow the online route.

Transitioning to new system: The new taxation system has made old laws and understanding outdated to a point. Transitioning to the new system means a complete workforce needs to be upgraded, creating more space and avenues for experts to impart knowledge and learning.

Indirect impact on skill training and education: To follow the new directives with accuracy, a niche industry has taken shape which is imparting technical know-how and training in operating GST-related software. A series of skill training centres are on the rise, as there is much requirement for experts in the field, both in rural areas and metros, for various functions.

Marg ERP has taken major initiatives to upgrade the workforce and to build software skills in students, and at the same time gain good placement opportunities.

The job sector in these domains is highly exciting and brimming with new opportunities. The future of the sector also is highly positive as the tax regime will only get stronger in the future, creating more avenues of employment. Tax and inventory software solution has indeed become the sunshine sector of the Indian job market.

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(The writer is co-founder and managing director, Marg ERP)

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