Industry finds GST beneficial, seeks clarity and dispute reform: Survey

India Incorporated as had a largely positive experience with the Goods and Services Tax (GST) regime over the past eight years, with benefits such as simplified compliance and improved business growth, according to Deloitte India’s GST survey. The study, based on 963 responses from senior executives across eight industries, highlighted the need for more clarity in rules, stronger dispute resolution mechanisms, and uniform audit practices between central and state tax authorities. Respondents also called for the rationalisation of GST rates across supply chains, liberalisation of export rules, and better mechanisms to unlock working capital.

The survey found that 85% of respondents expressed confidence in GST in 2025, up from 59% in 2022. Head of Tax division at Deloitte India, Mr. Gokul Chaudhri, attributed this to higher compliance maturity, digitisation, and proactive policymaker engagement. Key reforms suggested including pan-India standardisation of registration documents, reduced registration timelines, and improved refund procedures. While 45% of Micro, Small and Medium Enterprises (MSMEs) favoured rate rationalisation to enhance competitiveness, large and very large enterprises (45% and 47%, respectively) prioritised a stronger dispute resolution mechanism for greater operational certainty. Persistent hurdles such as complex refund processes, insufficient understanding of digital business models, and overly pro-revenue interpretations by authorities continue to impact ease of doing business. Since its rollout on July 1, 2017, GST has replaced 17 local taxes and 13 cesses under a unified Five-tier structure. The number of registered taxpayers has grown from 65 lakh in 2017 to 1.52 crore by 2025, underlining the tax system's growing reach and adoption across India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.