Media365
Nine years after its launch sparked confusion, compliance headaches and political controversy, the Goods and Services Tax (GST) has finally won the confidence of Corporate India. A Deloitte India survey found more than 99 per cent of businesses now report a positive or neutral experience with the indirect tax regime, but the goodwill comes with a growing list of demands—from faster refunds and fewer disputes to AI-powered compliance and simpler audits.
What was once one of India’s most debated tax reforms has now become, for most businesses, a familiar and largely accepted part of doing business. But while GST has clearly crossed the hurdle of acceptance, companies say the next phase must focus on fixing the friction points that still slow them down.
From tax reform to digital system
The survey, based on responses from 1,096 business leaders across eight industries, including small businesses, suggests that GST’s biggest achievement has been its transformation into a digital-first compliance system.
Nearly 69 per cent of respondents said the biggest gain from GST has been the digitisation of compliance. In practical terms, that means businesses now rely far more on online systems to file returns, track invoices and stay compliant. Another 54 per cent pointed to automation of tax processes, while 48 per cent said systems such as e-invoicing and e-way bills have become more stable.
For many companies, GST is no longer viewed simply as a tax. It is increasingly seen as a digital backbone that has brought more transparency, fewer manual errors and greater consistency to the way businesses operate.
“GST continues to enjoy strong and growing confidence across India Inc, with more than 99 per cent of businesses reporting a positive and neutral experience and negative sentiment dropping to near zero,” the report said.
It added that this confidence is being driven by greater transparency, consistency and ease of doing business.
The pain points that remain
Even with the strong approval, businesses say several problems still need fixing.
One of the biggest concerns is cash flow. About 67 per cent of respondents said working capital remains a challenge, especially when tax credits are stuck or refunds take too long. For exporters and manufacturers, delayed refunds can mean less money available to run day-to-day operations.
Refund delays were another major complaint. Around 77 per cent of respondents said they want faster processing and stricter timelines for refunds.
Tax disputes are also still a headache. More than half of the businesses surveyed said disagreements over input tax credit — the tax credit companies can use to reduce their tax bill — remain a major issue. Many also said GST rules are still interpreted differently across states, which creates confusion.
The survey found that businesses want clearer answers on tax rules, better handling of refunds and credits, and a more uniform audit system. In fact, 87 per cent said they want more clarity on how tax provisions should be interpreted.
Another 61 per cent backed a unified and harmonised audit process, while 57 per cent said disputes over input tax credit need to be resolved more quickly.
Audits remain another sore point. Nearly two-thirds of businesses said audits often feel too focused on raising revenue, which can lead to more notices and legal disputes.
Because of this, companies are asking for centralised audits for businesses that operate in multiple states, along with simpler and more consistent enforcement.
What businesses want next: GST 2.0
The survey makes one thing clear: Corporate India is no longer asking whether GST should exist. That debate is over. The new question is how to make it better.
Businesses now want what many are calling GST 2.0 — a smarter, faster and simpler version of the current system.
At the top of the list is clearer guidance from policymakers. Companies want fewer grey areas and less confusion over how rules should be applied. They also want reforms that improve cash flow, reduce compliance pressure and fix the inverted duty structure, where taxes on inputs are higher than taxes on finished goods.
There is also strong support for global best practices. Around 72 per cent of respondents backed centralised audits. About 70 per cent supported allowing reverse charge mechanism payments through input tax credit, while 64 per cent wanted a simpler GST rate structure.
Technology is also expected to play a bigger role. Nearly 89 per cent of respondents said AI-led data processing and reconciliation should be a top priority. Another 84 per cent supported automatic tax utilisation through the GST portal.
In other words, businesses want GST to become more intelligent, more automated and less time-consuming.
Mahesh Jaising, Partner and Leader, Indirect Tax, Deloitte India, said recent rate changes have already helped reduce confusion in some areas and improved consumption trends.
“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,” he said.
He added that this is especially important after recent rate cuts in sectors such as pharma, food processing, electric vehicles and some consumer goods, where businesses are seeing higher tax credit accumulation.
Industry players are also hoping that future GST Council meetings will happen more often and resolve issues faster. Deloitte said businesses want regular meetings so that new problems can be addressed quickly instead of waiting too long for a fix.
MSMEs say GST is getting easier
The survey also shows a sharp improvement in sentiment among micro, small and medium enterprises (MSMEs), which often feel the biggest burden from compliance rules.
One of the biggest wins for smaller businesses has been quarterly return filing. Positive views on this system jumped from just 12 per cent in 2023 to 67 per cent in 2026.
MSMEs also said their overall GST experience has improved, helped by higher exemption thresholds and simpler filing rules. Around 57 per cent of respondents said threshold relaxations have made compliance easier.
Small businesses also strongly support invoice-based input tax credit eligibility and quarterly payment systems, both of which reduce paperwork and make life easier for firms with limited staff and resources.
But cash flow remains a major worry. Nearly 89 per cent of MSME respondents said they support automatic interest payments on delayed refunds. For smaller firms, even a short delay in getting money back can affect salaries, purchases and daily operations.
A tax system that businesses no longer want rolled back
Perhaps the biggest sign of GST’s success is this: businesses are no longer talking about rolling it back.
Instead, the conversation has shifted to how it can be improved.
That is a major milestone for a tax reform that was launched in India on July 1, 2017, and initially faced a lot of criticism. Nine years later, GST has moved from being seen as a difficult change to becoming a widely accepted digital tax system.
Last year, in September, the GST Council approved several reforms, including rate rationalisation and changes to the tax structure under the broader GST 2.0 plan. The Council is expected to meet soon again to discuss more changes, including simpler registration and refund processes.
For Corporate India, the message is clear: GST has won trust. But the next phase will be judged not by acceptance alone, but by how simple, fast and predictable the system becomes.
The wish list is growing — and so is the pressure for GST 2.0 to deliver.
