As GST in India completed eight years on June 9, corporate confidence has recorded an increase of 26 percentage points in three years, a private survey result showed. The survey simultaneously suggested five areas of improvement, including rate rationalisation to be taken up on priority.

The survey, conducted by tax advisory and consultancy firm Deloitte, said India Inc’s confidence in GST has gone to 85 per cent in 2025 against 59 per cent in 2022. This is the fourth consecutive year of growing positive sentiment, reflecting continued confidence and adaptability with the tax regime, the firm said. The positive outlook was attributed to factors such as simplification and transparency in tax processes, unlocking value through seamless flow of Input Tax Credit (ITC) to reduce overall tax burdens, subsuming legacy taxes, removing State check posts and enabling technological solutions for easier compliance and standardising processes across states besides improving refunds and ensuring strong government portal connectivity.

The survey was conducted among C-suite and C-1 level executives and they were urged to share their views on 34 questions. It collated 963 responses from 8 industries comprising consumer; technology, media and telecommunications; energy, resources and industrials; banking and other financial services; life sciences and healthcare; government and public services; private equity and venture capital sector; and global capability centres.

The survey noted that nearly 10 per cent of the respondents cited a ‘neutral’ experience, highlighting scope for improvement, particularly in expense management and unlocking ITC. Remaining 5 per cent of the respondents reported a negative experience with GST. These respondents felt that there is limited clarity on new proposals and the retrospective nature of many pronouncements and judgment. At the same time, there are frequent unwarranted notices, disregarding previously submitted or explained facts. They also showed concern on conduct of GST audits and the tax authorities’ approach to litigation management.

While most respondents acknowledged that GST circulars have improved on clarity, a growing majority (67 percent in 2025 vs 55 percent in 2024) pointed to ongoing ground-level implementation challenges.

Key reforms

Mahesh Jaising, Partner at Deloitte India, listed key reforms during 2024 such as streamlining of the investigation process, clarifications specifically around valuation, stemming unwanted litigation, export-focused clarifications, measures to reduce working capital and a reduction in the quantum of pre-deposits.

“In this backdrop, to fully realise the objective of GST 2.0, India must prioritise forward-looking reforms, AI-powered compliance tools for using data, effective grievance redressal mechanisms, building a more agile, inclusive and positively transformative tax ecosystem,” he added.

Respondents gave their wish list for revamp of the five key areas. These include measures for export liberalisation, GST rate rationalisation, enabling a robust dispute resolution mechanism, need for streamlining audits across administrations and initiatives to help businesses unlock working capital.

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Published on June 23, 2025