- Indian Staffing Federation urges finance ministry to reduce GST on employment services from 18% to 5%
- Reduction could boost demand and increase workforce to 15-20 million
- Aims to formalize more jobs and align with national employment goals
- ISF represents over 1.8 million contract workers across 137 companies
- Lower GST rate could change perception of formal employment services as an additional cost
- Employment services contribute only 0.15% to overall GST collection
- Reduction expected to have minimal revenue impact while promoting employment
- Benefits include job formalization, job creation, increased income tax base, and expanded social security coverage
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
