About 90% of Indian industry leaders believe that Goods and Services Tax has made doing business easier by bringing down barriers, a Deloitte survey has found.
The GST regime has positively affected the prices and costs of goods and services to end consumers, along with helping companies optimise their supply chains, according to Deloitte’s GST@5 Survey 2022. Automation of tax compliances and introduction of e-invoicing/e-way facility emerged as the most beneficial reforms introduced by the government.
“Industry leaders are of the view that ‘one nation, one tax’ reform has certainly brought down barriers and made doing business easy and effective for both businesses and taxpayers,” Deloitte said.
A nationwide GST — which subsumed 17 local levies like excise duty, service tax and value-added tax and 13 cesses — was rolled out on July 1, 2017.
The buoyancy in GST collections in recent months is an indicator of the success that this technologically driven tax reform has brought into the system, said Mahesh Jaising, partner and leader (indirect tax) at Deloitte Touche Tohmatsu India LLP.
Now, it will be interesting to watch new developments coming under the GST space with a decision expected on extension of compensation cess, setting up of the GST tribunal, and small seller parity issue.
Looking ahead, industry is seeking a simplified input tax credit mechanism, followed by reduction in operational complexities for taxpayers. Industry leaders also consider managing tax disputes and the absence of appellate forums to resolve disputes as significant issues leading to serious long-term ramifications.
GST@5 Survey 2022 is conducted by Deloitte Touche Tohmatsu India LLP. The survey has responses from 234 CXO and CXO-1 level individuals and was done over a period of four weeks.