Eight Years Of GST: Industry Gives A Thumbs Up, Deloitte Survey Finds

As the Goods and Services Tax regime completes eight years, India Inc. is warming up to the tax reform like never before, reveals a survey by Deloitte, one of the Big Four global accounting firms. In what is the fourth consecutive year of rising confidence, 85% of industry respondents have had a positive experience with GST, according to Deloitte's annual survey.

The numbers in the survey show a steady shift in sentiment. MSME satisfaction rose to 82% in 2025, up from 78% last year, indicating that even the smaller businesses are finding their stride under GST.

Key reasons for this optimism include a mix of digital ease, simplification of tax processes, and a more responsive policy environment, as per the report.

Nearly all businesses said they are ready, at least partially, for audits and notices. Features like auto-population of GST returns through e-invoicing were rated as the most user-friendly, reducing manual errors and easing compliance. Around 67% of businesses, as compared to 55% in 2024, felt that government-issued clarifications helped resolve real-world tax disputes.

Why Businesses Gave Thumbs Up To GST

• Unlocked input tax credit, lowering overall tax costs: something that simply didn't exist under VAT.

• Standardising processes across states, improving refunds and ensuring strong government portal connectivity.

• Subsuming legacy taxes, removing state check posts and enabling technological solutions.

Other significant reforms include:

• Interstate trade now forms 35% of India's GDP, up from 23.5% in fiscal 2018.

• Indirect tax rates have declined, from 15% pre-GST to 12.2% as of March 2023.

Essential goods are cheaper:

• Hair oil and soaps: 28% to 18%

• Electrical appliances: 31.5% to 12%

• Edible oils and cereals: 6% or 2.5% to 5% or nil

A PM-EAC study estimates that GST has saved over Rs 4.3 lakh crore in taxes in a single year.

What Still Needs Work

Even as industry applauds the regime, businesses aren't shying away from listing what could be better:

• Rationalisation of GST rates, especially addressing inverted duty structures.

• Simplified registration, particularly for new businesses.

• A unified, fast dispute resolution mechanism, including operational tax tribunals.

• Audit uniformity across central and state authorities.