Indian Staffing Federation seeks lower GST for job growth

The Indian Staffing Federation (ISF) is urging the government to reduce the Goods and Services Tax (GST) on employment services from 18% to 5% to boost formal job creation. The ISF argues that a lower GST rate would enhance competitiveness in sectors like healthcare and retail, potentially adding millions to the formal workforce. They believe this would align with national employment goals and expand the tax base. The proposal, submitted to the finance ministry, comes before the upcoming GST Council meeting and highlights the minimal fiscal impact of the change, despite the potential for increased formalization.