84% Businesses Give Thums-Up To GST Regime: Deloitte

(MENAFN- KNN India) New Delhi, Jun 21
India's business community has expressed growing confidence in the country's Goods and Services Tax (GST) system, driven by increased automation of tax compliance and enhanced stakeholder consultation, according to a survey released by Deloitte on Wednesday.

The survey found that 84 percent of industry executives now have a positive perception of the GST regime, up from 72 percent in 2023 and 59 percent in 2022.

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

Among the key benefits cited, 73 percent of respondents pointed to competitive pricing as GST's greatest operational advantage. Automation of tax compliance, including e-invoicing, was also voted as a top performance area.

The survey highlighted enhanced stakeholder consultation, leading to the issuance of clarifying circulars and instructions, as other factors contributing to the improved perception of the GST system as it nears its 7th anniversary.

However, positive sentiment remains lower among Micro, Small and Medium Enterprises (MSMEs), with 78 per cent expressing a favourable view of GST implementation this year compared to 66 percent in 2023.

The survey identified areas where further reforms are needed, such as rationalizing 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 expected to be discussed at the upcoming GST Council meeting on June 22nd. "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 stated.

Notably, 95 percent of surveyed executives advocated for implementing a compliance rating system and expressed the need for seamless integration across tax systems.

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, which could help MSMEs navigate compliance challenges more effectively and contribute to India's economic growth.

(KNN Bureau)


KNN India

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