India Inc primed for next phase of GST reform: Deloitte Survey

NEW DELHI: The Indian industry feels the time has come to unleash the next phase of reforms in GST administration to enhance ease of doing business and called for an amnesty scheme for resolving existing tax disputes that have tied up business capital and government revenue, according to a survey.

The GST administration has undergone tremendous transformation since its introduction on July 1, 2017, a Deloitte survey said on Tuesday.

The survey found an increased acceptance of the simplified tax regime amongst businesses, with 88 per cent of MSMEs reporting a reduction in goods and services costs along with optimised supply chains.

According to the survey, 80 per cent of business leaders expressed that the time is ripe for the next phase of GST regime reforms for enhanced ease of doing business and sectoral growth in the next few years.

Respondents to the survey acknowledged the need for introducing an amnesty scheme, essential for resolving existing tax disputes that had tied up business capital and government revenue, the survey said.

Further, it added that 70 per cent of business leaders have reaffirmed their positive reliance on evolving aspects of GST law - a 10 per cent increase from the preceding year.

Mahesh Jaising, partner-leader, Indirect Tax at Deloitte India, said India Inc is quite positive towards the changes facilitated by the GST regime and the increasing supply-chain efficiencies.

“The 22 per cent YoY (Year-on-Year) growth in GST revenue is testimony to the overall economic development and tax-payer-centric administration. About 88 per cent of MSME respondents have acknowledged the reduced cost of goods and services, attributing it to the improved uniformity of the GST regime,” Jaising said.