New Delhi, Sept. 4 -- The rationalisation of goods and services tax (GST) slabs will have a domino impact on permanent and temporary recruitment as the retail, manufacturing and auto sectors look at boosting capacity utilisation to meet an expected increase in demand.

Consulting and recruitment firms estimate that the reduced tax slabs, to be introduced on 22 September, a month ahead of Diwali, will allow companies to hire more as production increases.

"If we look at a back-of-the-envelope estimation, 60% of GDP is private consumption and if we take the entire consumption basket, if we assume that 25% is discretionary, it can give an upward boost of 15% to private consumption," noted Ranen Banerjee, partner and economic advisory leader ...