Today, India passed the Goods and Services Tax (GST) — tax reform that has been in the works for 16 years and would replace most indirect taxes in India, Asia’s third largest economy. The bill now needs the approval of half of India’s state legislatures, and central and state legislatures must pass three laws to implement the tax.
Highlights of the tax reform include:
- India would consolidate its numerous indirect taxes into a single structure: the Goods and Services Tax.
- The rate of the tax would be between 15 and 18 percent.
What does this have to do with HR technology?
The significance of this tax reform to the world of HR technology is the potential expansion of multinational business in India. This means there will likely be more companies needing HR technology solutions and, therefore, more opportunity for technology vendors.
There is great synergy between technology sectors in the US and India. According to Tech Crunch, India is already one of the largest bases for technology startups (after the US, the United Kingdom and China).
Over the last few years, the HR-focused portion of the technology space has been taking progressive steps, reflecting key trends in the global market, including cloud and big data and analytics.