India Inc. backs GST as a trusted digital ecosystem; calls for continued structural and operational GST 2.0 reforms: Deloitte GST@9 survey
As GST completes nine years, Deloitte India’s GST@9 survey underscores its evolution into a robust nationwide digital ecosystem, backed by strong industry confidence. The next phase, GST 2.0, will move beyond digitalisation to an intelligent, predictive and integrated framework, with businesses seeking AI-driven compliance, data-led dispute reduction and a seamless, unified taxpayer experience.
Based on 1,096 responses from leaders across eight industries, including MSMEs, the survey reveals near-universal acceptance of GST, alongside a focused reform agenda to shape GST 2.0. GST continues to enjoy strong and growing confidence across India Inc., with more than 99 percent of businesses reporting a positive and neutral experience and negative sentiment dropping to near zero, down significantly from 5 percent in 2025 and 10 percent in 2022. This trust is driven by key improvements such as digitalisation of compliance (69 percent), automation of tax processes (54 percent) and the stabilisation of e invoicing and e way bill systems (48 percent), alongside greater transparency, consistency and ease of doing business. Thus, it is evident that technology-led administration is pivotal, as organisations increasingly depend on digital systems for enhanced accuracy, speed and predictability.
“GST has significantly improved compliance and transparency with the GST Network as India’s trusted tax framework. This digital backbone enables taxpayers, businesses and the government with real-time compliance and data-driven decision-making. Intelligent, integrated capabilities will soon be a reality. An overwhelming 89 percent of stakeholders identify AI-led data processing and reconciliation as their top priority, 84 percent support automatic tax utilisation on the GST portal and 53 percent call for a unified taxpayer dashboard. Collectively, these signal a shift towards embedded intelligence, deeper automation and seamless digital experiences to deliver greater transparency, certainty and global competitiveness,” said Gokul Chaudhri, President, Tax, Deloitte South Asia.
Industry asks: Focused reform agenda for GST 2.0
Policy priorities centre on resolving tax interpretation ambiguities (ranked the highest), followed by improving working capital efficiency and addressing the inverted duty structure. On the operational side, businesses seek audit uniformity (ranked highest), followed by expeditious sanction of refunds. From a global best-practice lens, there is strong support for centralised audits (72 percent), allowing RCM payments through ITC (70 percent) and further simplification of the GST rate structure (64 percent), reflecting a clear push towards a more efficient, harmonised and business-friendly tax regime.
“The recent rate rationalisation has been a significant and path-breaking reform by the Government, having a positive impact on overall pricing and consumption. The collapsing of the multi-rate structure to two rates has reduced classification disputes and has increased consumption, reflecting sustained growth in GST revenues. The key industry expectations include the need to resolve interpretational ambiguities (87 percent) by the GST Council, improve working capital through streamlined refunds and credit utilisation (67 percent), address ITC disputes (57 percent) and implement a unified and harmonised audit process (61 percent), with greater audit consistency and compliance simplification through centralised and technology-led reforms.
As GST enters its next phase of evolution, it is an opportune moment to address the top policy area of the survey, i.e., working capital concerns, such as expanding the scope of the inverted duty structure refund formula to include input services and capital goods. This is particularly in the backdrop of pro-consumer rate reductions in sectors such as pharma, food processing, EVs and certain consumer goods, where substantial credit accumulation is being experienced.
Industry hopes for some of these recommendations to be considered in the next GST Council meeting and also hopes for regular GST Council meetings thereafter, such that topical issues are addressed soon/ periodically,” said Mahesh Jaising, Partner and Leader, Indirect Tax, Deloitte India.
An opportunity to enhance the ease of doing business
While the GST framework continues to evolve positively, ongoing reforms present an opportunity to further enhance ease of doing business. Strengthening refund efficiency, particularly through adherence to stricter timelines (77 percent), can help improve working capital flows, while greater clarity in interpretational areas (87 percent) and key litigation drivers such as ITC eligibility (57 percent), classification (33 percent) and reconciliation (31 percent) can reduce disputes. Enhancing the effectiveness of appellate processes, including addressing concerns around independent review (70 percent) and disposal timelines (53 percent), will further support a more predictable environment. Continued focus on audit uniformity (61 percent) and faster refunds (36 percent) signals a constructive path towards a more consistent, efficient and business-friendly tax ecosystem.
Sector outlook: Divergent priorities, shared confidence
GST enjoys near-universal acceptance across sectors, with over 99 percent positive and neutral sentiment, even as priorities diverge by industry. Consumer (70 percent) and ER&I sectors highlight supply chain optimisation (73 percent) and working capital efficiency, while TMT values compliance digitalisation (70 percent) but seeks simplification amid frequent system changes. BFSI and GCCs emphasise automation and integrated digital infrastructure, whereas LSHC benefits from competitive pricing (69 percent) but continues to face export and ITC challenges. PE/VC, meanwhile, appreciates policy responsiveness (73 percent) but seeks clarity in digital taxation. The impact of rate rationalisation is strongest in Consumer (64 percent) and LSHC (58 percent) but remains structurally driven, with few sectors reporting no change in consumption. Overall, despite sector-specific nuances, expectations converge on a more simplified, intelligent GST system.
MSME outlook: Strong gains, continued need for liquidity support
MSMEs are reporting a steadily improving GST experience, driven by reforms such as quarterly return filing, now recognised by 67 percent compared with just 12 percent in 2023, and threshold relaxations (57 percent). There is a clear preference for simplified compliance, with strong support for invoice-based ITC eligibility (88 percent) and quarterly payment mechanisms (87 percent). At the same time, liquidity remains a key concern, reflected in overwhelming support (about 89 percent) for automating interest on delayed refunds, underscoring the need for faster and more predictable cash flow management.
