84% senior executives hold positive view of GST, reveals Deloitte survey

The adoption of robust tax technology aided in improved compliance and hence more senior executives have a positive perception of GST implementation, according to a survey by Deloitte which commemorates the seventh anniversary of GST reforms.
The GST@7 Deloitte survey showed that 84% of the respondents assumed a positive outlook towards GST compared to 72% of last year’s sentiment assessment. A robust tax tech framework, improved stakeholder consultation by the government, enhanced financial and supply chain efficiencies, and removal of ambiguities due to clarity around regulatory guidelines account for the key reasons for this increased positive reception. Competitive pricing of goods and services was considered as the biggest impact area under GST. However, the positive impact of GST on supply chain optimisation has been perceived to have fallen with a decline of 10% of respondents feeling so.
A total of 760 responses were received for an online survey comprising 40 questions from the C-suite of six industries namely Consumer, Energy, resources & industrials, Life Sciences & Healthcare, Technology, media & telecommunication, Banking & other financial services, Government & public services. The responses were taken from huge businesses and MSMEs. The survey findings were broadly divided among reforms, ease of doing business and effective dispute resolution, use of GST data, and focus on MSMEs.
The need to rationalise rates with a focus on the removal of inverted duty structure, streamline dispute resolution, and embrace faceless assessments remains a key demand of the respondents. Additionally, about 86% of the respondents sought the removal of credit restrictions, while 70% emphasised export rules liberalisation.
The survey reported that continuous changes in tax regulations and hasty demand orders emerged as the biggest industry challenges. The respondents suggested an urgent need for one-time resolution of disputes arising from the initial years of GST implementation.
Respondents' satisfaction with IT systems almost doubled from 44% in 2022 to 81% in 2024 across industries. Transition to the GST portal, live status of vendor GST registration, and refund claims have been attributed for the same. The report highlighted the role of the GST Network in the facilitation of business analytics and data security. Larger businesses are however expected to benefit more from the GST data for analytics than smaller businesses since 50% of the latter find obtaining the data a time-consuming process.
Nearly 92% expressed satisfaction with e-invoicing. Most executives agreed that a further reduction in the threshold would enhance data accuracy and future readiness. Only 48% however, fully agree that paperless invoicing facilitates the growth of the MSME sector. Availing input tax credit and quarterly payments with monthly invoice upload are the top-ranked relief measures for MSMEs.
Big businesses are more optimistic about GST than smaller ones. This highlights ongoing challenges in its adoption and implementation for MSMEs. The life sciences and government sectors show exceptionally positive views, with 91% of respondents expressing satisfaction.