About 84 per cent of India Inc. has expressed strong support for the goods and services tax (GST) implementation and has called for progressive steps to take the regime to a new level. According to Deloitte India’s third edition of the GST@7 survey, confidence in the reform has significantly increased from 59 per cent in 2022 and 72 per cent in 2023 to 84 per cent in 2024.
The survey highlighted the areas where more reforms are required; these include 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 crucial recommendations are expected to be key discussion points at the upcoming GST Council meeting on 22 June 2024.
Marking the seven-year journey of GST, Deloitte India surveyed to capture India Inc.’s views on this transformational tax reform. As per the survey, 88 per cent of the top C-suite leaders indicated areas of challenge, including aspects around audits and assessments, underscoring the need for continued simplification, technology integration and capacity building.
There is also widespread feedback for enabling effective dispute-resolution mechanisms, with 91 per cent of leaders endorsing the extension of audit timelines to address issues and improve compliance. Additionally, more than 70 per cent of respondents advocated for aligning pre-deposit requirements for GST appeals with the pre-GST era norms, aiming to streamline the dispute resolution processes.
Mahesh Jaising, Partner and Leader, Indirect Tax, Deloitte India 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."
Jaising added that 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.
Specifically, recommendations on operational areas include swift and effective dispute resolution mechanisms, streamlining audit procedures and giving shape to a new indirect tax landscape administration. The overwhelming specific request on this front, at 88 per cent of respondents, is to move towards a faceless assessment system.
Going further, the survey calls out that the digital tax platform/administration gives ample scope to use the data gathered for critical business analytics and market insights. About 95 per cent of India Inc. leaders strongly advocated putting in place a compliance rating system and felt that it was high time that seamless integration across tax systems is achieved.”
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