India’s Goods and Services Tax (GST) regime, now eight years old, continues to enjoy growing acceptance among businesses across sectors. According to Deloitte India’s GST survey 2025, 85% of industry respondents reported a positive perception of GST, up from 59% in 2022. This marks a notable shift in sentiment, signaling the maturation of GST compliance, increased digitisation, and better engagement between policymakers and businesses.

The GST survey 2025 India, which gathered insights from 963 senior executives across eight industries, confirms that while GST has simplified tax compliance and aided business growth, several challenges persist. Participants appreciated the fact that GST has replaced 17 local taxes and 13 cesses since its introduction on July 1, 2017, creating a unified five-tier tax structure. The number of registered taxpayers under GST has surged from 65 lakh in 2017 to 1.52 crore in 2025, showcasing the increasing adoption of the GST system throughout India.

Despite this progress, there is a strong industry-wide demand for reforms in certain critical areas. A major concern highlighted in the Deloitte India GST report is the need for clarity in GST rules, especially when it comes to classification, rate applicability, and input tax credit mechanisms. Non-uniform interpretations by central and state tax authorities are creating confusion and inconsistent audit practices, which businesses say hinders predictability and compliance.

One of the most urgent reforms called for is the creation of a stronger and faster dispute resolution mechanism. As per the survey, 45% of large and 47% of very large enterprises identified litigation and dispute management as a major bottleneck. Operational certainty, they believe, can only be achieved if GST disputes are resolved more efficiently and uniformly, without excessive delays or protracted litigation.

Another major area of concern is the GST refund process. Many respondents reported that complex refund procedures, especially for exporters and digital businesses, continue to hamper working capital efficiency. MSMEs, in particular, highlighted the burden of cash flow constraints due to delayed or partial refunds. Companies dealing in zero-rated exports or inverted duty structures reported frequent bottlenecks in securing timely refunds.

The survey also noted significant demand for GST rate rationalisation, particularly from Micro, Small and Medium Enterprises (MSMEs). About 45% of MSME respondents supported simplifying and rationalising GST rates across the supply chain to enhance competitiveness and reduce compliance complexity. A flatter, more predictable rate structure would help smaller businesses better plan pricing and procurement strategies, improving their competitiveness both domestically and globally.

A critical reform demanded by businesses is the standardisation of registration requirements across India. Companies are calling for uniform registration documents, reduced registration timelines, and greater integration between GSTN and other regulatory systems, such as PAN and Aadhaar. These steps would reduce redundancy and ease onboarding, especially for businesses operating in multiple states.

The ease of doing business in India, a key metric for both domestic and foreign investors, is also directly impacted by the state of the GST regime. While GST has undeniably brought structural efficiency, industry voices in the 2025 survey stress that persistent hurdles like pro-revenue interpretations by authorities, lack of understanding of digital and new-age business models, and technical glitches in e-filing systems still pose significant challenges.

Mr. Gokul Chaudhri, Head of the Tax Division at Deloitte India, noted that the improved perception is due to businesses becoming more digitally mature, combined with proactive initiatives by policymakers. However, he cautioned that the next phase of GST evolution must focus on simplifying tax administration, minimising legal ambiguities, and creating a robust technological backbone for dispute resolution and compliance.

From a policy standpoint, GST is now at a critical inflection point. Having stabilised the base infrastructure and compliance protocols, the focus must now shift to fine-tuning operations, enabling sector-specific reliefs, and strengthening taxpayer confidence. The GST compliance feedback in the Deloitte report is not a critique of the system’s foundations but a constructive roadmap for making GST more business-friendly and inclusive.

India’s tax ecosystem is also being influenced by the rise of digital commerce, platform-based economies, and cross-border e-commerce, which demand a more nuanced understanding of taxation frameworks. The GST Council and tax administrators must evolve in tandem, ensuring the tax net is broad but not burdensome.

Looking ahead, reforms such as the rollout of a unified audit framework, automation of refunds, and the use of artificial intelligence for compliance monitoring could significantly reduce friction between taxpayers and authorities. Additionally, the industry expects greater consultation between regulators and trade bodies, ensuring policies are reflective of on-ground realities.

To summarise, the GST benefits for industry remain clear: improved tax compliance, reduced cascading taxes, and enhanced business scalability. But for GST to truly become the cornerstone of India’s economic and trade architecture, targeted reforms in rate rationalisation, rule clarity, and dispute resolution are essential. The Deloitte GST survey 2025 serves as both a validation of progress made and a call to action for policymakers to address lingering pain points.

As India pushes towards a $5 trillion economy, an efficient, transparent, and well-managed GST regime will be vital in ensuring that both MSMEs and large corporations can operate with certainty, agility, and confidence. With the right reforms, GST can move from being a compliance tool to becoming a catalyst for growth and economic resilience.

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