As GST completes nine years, a Deloitte survey shows strong industry confidence but a growing demand for a more predictable and business-friendly tax regime, focusing on legal certainty, working capital optimisation, and dispute resolution reforms.
As the Goods and Services Tax (GST) completes nine years, Indian industry is looking beyond stabilisation and seeking a more predictable, technology-driven and business-friendly tax regime, according to a report by Deloitte India's 'GST@9 survey." The survey, which gathered responses from 1,096 senior executives across sectors and company sizes, found that industry confidence in GST remains strong, with 99 per cent of respondents reporting either positive or neutral sentiment towards the indirect tax framework. While businesses acknowledged the gains achieved through digital compliance and tax standardisation, they identified legal certainty, working capital optimisation and dispute resolution as key priorities for the next phase of reforms.
Key Priorities for GST 2.0
According to the report, resolving legal ambiguities emerged as the top policy priority for businesses, with 85 per cent of respondents seeking greater clarity and consistency in tax interpretation. Around 67 per cent also called for initiatives to help businesses unlock working capital, while 63 per cent highlighted the need to address inverted duty structure issues. Reflecting industry expectations from GST 2.0, Deloitte noted in its point of view that there is a need for "structural and operational streamlining for the next phase of GST reform", with industry seeking "predictability & consistency on tax interpretations and working capital optimisation, supported by rationalised inverted duty structures, flexible credit utilisation & faster refund sanctions."
Demand for Audit and Litigation Reforms
The survey also found widespread support for audit and litigation reforms. About 61 per cent of respondents said ensuring uniformity in audits should be a priority, while concerns around a pro-revenue approach by tax authorities and parallel proceedings by central and state GST authorities continue to weigh on businesses. On dispute resolution, industry participants called for a more balanced and predictable framework. Deloitte observed that there is a "need for harmonised dispute resolution" and that a "consistent, predictable and fair framework can reduce interpretational issues, moderate audit-to-notice conversions and litigation costs."
Working Capital and Refund Challenges
Working capital concerns remain a recurring theme across sectors. Delays in GST refunds affecting cash flows were cited as the biggest challenge in export operations by 77 per cent of respondents. Businesses also advocated reforms such as cross-utilisation of CGST credits across registrations and expansion of refund eligibility under inverted duty structures.
Push for Technology-Driven Reforms
Technology-driven reforms are expected to play a central role in the next phase of GST evolution. Respondents expressed strong demand for integrated compliance systems, unified dashboards and AI-enabled reconciliation tools. According to Deloitte, the focus of the next-generation GST Network should be on "pre-filled returns, intelligent reconciliations and integration with e-way bill, e-invoice and SEZ portals." The survey further revealed that 89 per cent of respondents see intelligent data processing and reconciliation as the area with the highest potential for artificial intelligence adoption within the GST ecosystem.
MSME-Specific Demands
For MSMEs, simplified compliance and liquidity support remain key concerns. Invoice-based input tax credit eligibility, quarterly payment mechanisms and automated interest payments on delayed refunds emerged as the most sought-after reforms.
The findings indicate that while GST has achieved broad acceptance and delivered significant gains in transparency and digitalisation, businesses now expect GST 2.0 to focus on certainty, efficiency and ease of doing business as India advances towards its broader economic growth ambitions. (ANI)
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