One lakh jobs may be created to support GST implementation: Infosys co-founder
Bengaluru: Infosys co-founder and investor Kris Gopalakrishnan on Friday said the country may see 10,000 to 1 lakh jobs being created in the next six months to support goods and services tax (GST) implementation.
“Every year we need to create about 20 million new jobs, though I do not have seen any data or report. So, in my estimate, probably in next six months, we will see, may be 10,000 to 1 lakh jobs being created to support GST implementation,” he told reporters on the sidelines of a Confederation of Indian Industry (CII) event in Bengaluru.
“But, beyond six months, it is very difficult to say at this point of time, how much more it would increase,” Gopalakrishnan, who is the chairman of CII’s India Innovation Summit said.
The two-day 13th India Innovation Summit with the theme, ‘The New Wealth of Nations – Innovation and Intellectual capital’ will begin in Bengaluru on 13 July. The summit will cover subjects such as, teens as innovators to disrupt the existing businesses, rise of machines and future of human labour, india’s digital transformation into a cashless economy and the great expectations on the e-commerce industry – scaling the consumption economy, among others.
On concerns raised by the industry on anti-profiteering clause, Gopalakrishnan said it is time for the country to move forward as the government is open to make adjustments as and when it learns from feedbacks it gets during implementation.
The industry had raised concerns on anti-profiteering clause which it feared will lead to inspector raj and tax harassment. The Central GST (CGST) law provides for an ‘anti-profiteering’ clause to ensure business passes on the benefit of reduced tax incidence on goods or services or both to consumer.
Backing Gopalakrishnan’s remarks, Volvo India managing director Kamal Bali said he is not worried on anti-profiteering clause as the market forces will make manufacturers and service providers to adjust to new market norms. Bali said the government has basically put this act more as a deterrent and argued that one cannot sell products according to the whims and fancies of the businesses.
On keeping out petroleum products from the ambit of GST, Gopalakrishnan said, “Every product should come into the ambit of GST.” Bali said, at least the government has made a good beginning by implementing GST which was long overdue and the businesses and companies should move forward.
“CII also have been pushing for GST implementation from 1 July. We did not want it to be further delayed,” he added.
Asked about the effect of GST would have on shadow economy, Gopalakrishnan said the process of transition from a shadow economy to transparent economy has begun, but it wouldn’t happen overnight. From the angle of jobs also, Gopalakrishnan said, “Ninety per cent of jobs are in unorganised sector, only 10% of jobs are in organised sector. So, the transformation from unorganised to organised sector will take more time. GST is the beginning of this transformation.”
- Deals Buzz: Exiled promoters may move court against IBC ordinance barring rebid
- Energizer multi-port charger review: What your bedside table and workstation needs
- What if there is a price tag on nature?
- PSU banks cement grip on corporate defaults in $207 billion bad loan fight
- GST implementation textbook example of how not to roll it out: Yashwant Sinha