New Delhi – Confidence in India’s Goods and Services Tax (GST) framework has surged, rising from 59% in 2022 to 85% in 2025, according to a Deloitte India report released on Monday. This boost is attributed to improved compliance maturity, increased digitisation, and proactive policy engagement by the government.
As India commemorates eight years since the implementation of GST, Deloitte India’s latest survey highlights strong support for the tax regime among businesses of varying sizes and sectors. Respondents expressed a clear desire to move into the next phase of reforms in line with India’s $5 trillion economic vision.
“The eighth anniversary of GST marks a major milestone, with Indian businesses showing sustained optimism in the system,” said Gokul Chaudhri, President, Tax, Deloitte India.
He noted that the automation of tax processes—particularly through e-invoicing and the auto-population of returns—continues to yield measurable benefits. Chaudhri also lauded the government’s collaborative approach in addressing industry concerns through timely clarifications.
The year 2024 saw major strides in GST reforms, including streamlining investigation procedures, issuing clarity on valuation norms, reducing unwarranted litigation, introducing export-centric changes, easing working capital constraints, and lowering pre-deposit requirements.
“To fully unlock the potential of GST 2.0, India needs to focus on forward-thinking reforms, integrate AI-powered compliance tools, strengthen grievance redressal systems, and build a more agile, inclusive, and transformative tax environment,” said Mahesh Jaising, Partner and Indirect Tax Leader at Deloitte India.
While 67% of respondents in 2025 acknowledged improved clarity from GST circulars—up from 55% in 2024—many highlighted persistent implementation challenges at the grassroots level.
Among the survey’s key recommendations for the GST Council is prioritising export liberalisation. This has climbed from fourth place in 2024 to the top priority in 2025, reflecting a shift in industry focus towards enhancing India’s global trade competitiveness.
Other key recommendations include rationalising GST rates across supply chains and adopting a tailored policy approach for Micro, Small, and Medium Enterprises (MSMEs).
“Though the progress so far is promising, businesses now expect GST 2.0 to focus more on refining critical aspects like dispute resolution, audit simplification, and rationalisation of GST rates,” Jaising added.
The survey collected responses from 963 senior executives across eight major industries.
India’s gross GST collections for May 2025 stood at ₹2.01 lakh crore, a 16.4% increase compared to ₹1.72 lakh crore in May 2024.
With inputs from IANS