India – Flex-staffing sector sees faster growth since enactment of Goods and Services Tax (Financial Chronicle)
Staffing Industry Analysts India’s organised temporary staffing industry has not just made a significant recovery from the lows of demonetisation, but has also clocked a faster growth one year on from the implementation of the Goods and Services Tax (GST), reports the Financial Chronicle citing data from the Indian Staffing Federation. GST saw companies shifting from the unorganised staffing providers to organised players. Rituparna Chakraborty, president of the Indian Staffing Federation, said the organised flexi-staffing sector has witnessed approximately 15% in hiring post-GST. The growth has been evident in sectors, including e-commerce, logistics, BFSI (Banking, Financial Services and Insurance), pharma and automotive manufacturing. Meanwhile, new jobs are largely being added in sales, logistics, supply chain and delivery. “Overall, we have seen a double-digit growth in our staffing business. The flexi market is growing at about 10-14% year-on-year, we are happy that we are growing faster than the market rate. Our growth can largely be attributed to our superior service levels and customers wanting to associate themselves with brands that are ethical and compliant with all regulatory.” Kapil Sharma, chief sales Officer at IT recruitment and staffing services firm Collabera, commented, “In the pre-GST era, the unorganised staffing companies had a price benefit as they never charged service tax. But now, there is an incentive for the organisations to choose the services of tax-compliant staffing firms, which allow them to claim input tax credit. Organisations seem to have shifted their choice from unorganised staffing partners to organised partners. In a way, GST has been a game changer for the flexi-staffing business. To claim tax benefits under GST, businesses prefer meeting their hiring needs via organised staffing firms registered under GST.” |
source:- Staffing Industry Analysts
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