The KPMG in India-FICCI GST Survey said GST has matured considerably through greater digitisation and transparency, creating a more unified and efficient indirect tax framework.
Businesses continue to prioritise simplification, certainty, faster dispute resolution, seamless credit flow and technology-enabled compliance as critical areas for reform.
The survey also highlights that businesses continue to seek simplification, certainty, faster refunds, seamless input tax credit flow and more effective dispute resolution as GST enters its next phase of reform. Enabling unfettered input tax credit flow, correcting inverted duty structures and enhancing certainty in tax administration.
“Nine years after its introduction, GST stands as a reform that has unified India’s indirect tax framework and driven transparency and digital adoption.
“Going forward, addressing compliance complexities, enabling unfettered credit flow, correcting inverted duty structures and enhancing certainty in tax administration will be critical to strengthening ease of doing business and unlocking the full potential of GST,” the survey said.
GST, which subsumed 17 indirect taxes and 13 cesses, was rolled out on July 1, 2017.
About 53 per cent of survey respondents reported that tax administration has evolved towards a more collaborative approach; however, industry feedback on interactions with tax authorities remains mixed, with 47 per cent highlighting variation in interpretation and implementation.
As per the survey, 72 per cent rated GSTAT benches as moderately accessible, while 76 per cent described the GSTAT appeal process and digital platform as moderately effective.
Among future GST reform priorities, respondents identified effective utilisation of GST credits across GSTINs, rationalisation of the ITC framework, and inclusion of oil and gas within the GST framework as key areas.
Resolution of inverted duty structure, including refunds of accumulated credit on input services and capital goods, emerged as a key industry ask to ease working capital constraints and support business competitiveness.
KPMG in India Partner and Co-Chair of FICCI Taxation Committee Rajeev Dimri said the survey reflects the significant progress GST has made in supporting ease of doing business by creating a unified national market and enhancing transparency across industries.
“At the same time, industry continues to seek greater simplification, faster dispute resolution, rationalised input tax credit provisions and a more predictable tax environment. Addressing these priorities through a taxpayer-friendly and business-centric GST framework will be important to improving competitiveness, supporting investment and sustaining long-term economic growth,” Dimri said.