Majority Of C-Suite Executives Hold Positive View On GST: Deloitte

The survey reveals growing confidence in GST, with approximately 84 per cent of respondents expressing a positive perception in 2024, compared to 72 per cent in 2023 and 59 per cent in 2022

GST, introduced on July 1, 2017, subsumed 17 local taxes and levies, marking a significant tax reform milestone

Source : Freepik

A growing number of C-suite executives view GST positively, according to a Deloitte survey released on Wednesday. Many emphasise the need for further reforms, such as rationalising tax rates and improving dispute resolution processes to pave the way for GST 2.0. 

The Deloitte GST@7 survey underscores factors contributing to increased confidence in GST. These include the positive impact of GST automation and technology, as well as a consultative policy-making environment.

The survey reveals growing confidence in GST, with approximately 84 per cent of respondents expressing a positive perception in 2024, compared to 72 per cent in 2023 and 59 per cent in 2022. Key areas contributing to this sentiment include the automation of tax compliance, notably e-invoicing, which remains a top-performing aspect. Stakeholder consultations leading to clarificatory circulars and instructions were also seen as positive steps in policy-making.

However, the survey identifies areas needing further reform, such as rationalising tax rates, improving dispute resolution mechanisms, removing credit restrictions, implementing faceless assessments, liberalising export rules, and establishing a compliance rating system. GST, introduced on July 1, 2017, subsumed 17 local taxes and levies, marking a significant tax reform milestone.

In commemorating seven years of GST, Deloitte India conducted the survey to capture the perspectives of India Inc. on this transformative tax regime. According to the findings, 88 per cent of C-suite leaders highlighted challenges around audits and assessments, underscoring the ongoing need for simplification, technological integration, and capacity building.

Survey respondents emphasised the importance of effective dispute resolution mechanisms, with 91 per cent advocating for extended audit timelines to address issues and enhance compliance. Additionally, over 70 per cent suggested aligning pre-deposit requirements for GST appeals with pre-GST norms to streamline dispute resolution processes.

Deloitte India Partner and Leader Mahesh Jaising said, "India Inc. has enhanced confidence in the workings and efficiency of the GST regime. Such positive sentiment is reflective of supply chain efficiencies, the benefits of tax, technology, and continued stakeholder engagement on GST policy matters.”

"The survey reveals that it is time to push for further reforms to make the regime more robust, dynamic and responsive to taxpayers' needs. GST 2.0 should review the possibility of expanding the GST regime's tax base, rationalising tax rates, removing ITC restrictions, further export liberalisation for services, unlocking working capital and addressing concerns related to operational areas of compliance," added Jaising.

Jaising said, "78 per cent of MSMEs have shared a positive sentiment towards GST implementation this year versus 66 per cent in 2023... Key initiatives sought by MSMEs are paperless invoicing and that uniform registration guidelines across India will significantly ease compliance burdens." 

The survey recommends simplifying GST registration for Micro, Small, and Medium Enterprises (MSMEs) through streamlined procedures like virtual verification and uniform documentation nationwide. These initiatives aim to enable MSMEs to better manage compliance requirements and enhance their contribution to India's economic expansion.