How the New Tax Regime Will Create More Employment In India
The steep demand for and limited availability of diligent tax specialists, has also had an effect on increasing job opportunities for commerce graduates and MBA
The new tax regime in India has opened multitude of opportunities. On one hand while adoption of the GST promises 1-3% growth in the GDP, a recent report also suggests 11% increase in hiring across sectors. The market is welcoming the huge boost from the adoption of the new regime which could potentially result in over 1,00,000 immediate openings in practices of direct & indirect taxation, accounting, data analysis, and IT & software development.
Given the major reforms in the Indian legislative framework and especially in taxation, the time is exceptionally lucrative for chartered accountants, tax consultants, accounting professionals, and auditors. Not only are the corporates employing high-skilled tax consultants to design an effective approach to GST implementation and management, a large number of private businesses, early stage companies and startups too are engaging with professionals for end-to-end GST management, up-gradation, reconciliations & compliances. And given the complexities in filing these returns; to help the CA's effectively and effortlessly file their client's returns, there are automated Tax compliance software's like 'Taxmann's One Solution'.
The sheer ambition of GST implementation, down to every nook & corner of the nation has facilitated a humungous demand for chartered accountants who wouldn't just facilitate an understanding of the new tax regime and help companies set up processes, but also consult IT companies on development of the GST software, and work with organizations to drive awareness.
Various projects and initiatives taken including digital empowerment of citizens, Digital Indian platform (DIP), etc. to facilitate large-scale digitization of records to efficient delivery of services, is also contributing largely to the demand for efficient chartered accountants. These upcoming projects and initiatives require professional with multifaceted skills, to be able to understand the integration of accounting processes and digitization of various elements.
It is important here to highlight that while tax specialists, chartered accountants, and accounting professionals will be the one on top of the demand chain, the demand for thorough professionals across domains and profiles are also on the chart.
The steep demand for and limited availability of diligent tax specialists, has also had an effect on increasing job opportunities for commerce graduates and MBA (Finance) whiz kids. Sectors like banking & finance, e-commerce, retailing, supply chain, logistics, and manufacturing are also witnessing a surge in hiring people who have a basic know-how of the system.
One of the most important elements the new regime has brought about is the elimination of state-specific taxes. The uniformity of taxes has opened up territories beyond the favorable locations and allowed companies to explore markets and expand geographically, and also in it their capacity, product range, and services. Apart from accountants and tax consultants who help companies understand the processes, and design strategies, the new regime has also opened the doors for management professionals across functions - human resources, operations, growth, and logistics and supply chain, which again paints a happy picture for professionals in the domain.
The new regime has also contributed to a spike in the new business plan and motivated budding entrepreneurs to drive businesses, and thus increase jobs and self-employment in the country.
While the new tax regime promises a better future, it is important here to understand that it's not going to happen overnight. The GST is designed as a long-term strategy and hence the long-term impact will be delivered in the long term.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.