Temporary hiring in India is rising as the Goods and Services Tax has driven formalisation of the economy, reports the Economic Times, citing data from staffing firms such as TeamLease, Quess, Randstad and Xpheno. The firms have estimated that the number of new temp jobs is likely to reach 300,000 this year, up from 130,000 last year. “There is a five-fold increase in temp hiring since 2015. For its part, GST not just fuelled, it compelled formalisation of labour. As a result, organised temporary staffing became the much-needed enabler for corporate India,” Rituparna Chakraborty, cofounder, Team-Lease Services, said. Before GST was rolled out in July last year, unorganised and unregistered staffing companies did not charge service tax which gave them a pricing advantage. Since then, there is an incentive for customers to choose the services of tax-compliant staffing firms, as GST allows them to claim a tax credit. The staffing firms’ data also pointed to ecommerce firms as key drivers for temporary hiring, particularly during the festive season where Amazon has created more than 50,000 seasonal positions and rival Flipkart added 30,000 seasonal roles. Food courier firms have also been aggressively hiring during the festive season.