India Inc warms up to GST: Survey

The proportion of industry executives having a positive perception about the GST regime increased to 84% in 2024 from 72% in 2023 and 59% in 2022.
Last Updated : 19 June 2024, 23:17 IST

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New Delhi: India Inc’s confidence in the Goods and Services Tax (GST) has improved significantly in the past couple of years, helped by increased automation of tax compliance and enhanced stakeholder consultation, an industry survey by Deloitte showed on Wednesday.

The proportion of industry executives having a positive perception about the GST regime increased to 84 per cent in 2024 from 72 per cent in 2023 and 59 per cent in 2022.

“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,” said Mahesh Jaising, Partner and Leader, Indirect Tax, Deloitte India.

About 73 per cent of industry executives surveyed cited competitive pricing as GST’s greatest business operational benefit while automation of tax compliance, including e-invoicing, continues to be voted as a top performance area.

Enhanced and continued stakeholder consultation, leading to the issuance of clarifying circulars and instructions are cited as other factors, the survey released days ahead of the completion of 7 years of the nationwide tax.

However, among the Micro, Small and Medium Enterprises (MSMEs), the positive perception remains lower than the larger corporates. About 78 per cent of MSMEs have shared a positive sentiment towards GST implementation this year versus 66 per cent in 2023.

The survey highlights the areas where more reforms are required, including rationalising tax rates, offering an effective dispute resolution process, removing credit restrictions, adopting faceless assessments, liberalising export rules and implementing a compliance rating system.

Some of these issues are likely to be discussed in the GST Council meeting scheduled to be held on June 22. “The survey reveals that it is time to push for further reforms to make the regime more robust, dynamic and responsive to taxpayers’ needs,” Jaising said.  

About 95% of surveyed executives advocated for putting in place a compliance rating system and felt that it was high time that seamless integration across tax systems was achieved.

To support the MSME sector, the survey suggests easing GST registration by implementing streamlined processes, such as virtual verification and standard documentation across the country. These measures can help MSMEs effectively navigate compliance challenges and contribute more robustly to India’s economic growth.

Published 19 June 2024, 23:17 IST

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