Eight Years Of GST: Industry Gives A Thumbs Up, Deloitte Survey Finds
Key reasons for this optimism include a mix of digital ease, simplification of tax processes, and a more responsive policy environment, as per the Deloitte survey.
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.
