 "India Inc feels time ripe for next phase of GST reform: Deloitte Survey")
The Goods and Service Tax (GST) will complete six years on July 1, 2023. The central government in the last few years successfully consolidated indirect taxes under the GST regime, stirred the economy, and boosted compliance. The tax levied on the supply of goods and services is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax levied on the entire company.
According to a newly released Deloitte survey, the Indian industry believes that the time has come to uncover the next phase of reforms in GST administration to boost the ease of doing business and called for an amnesty scheme for resolving existing disputes that have tied up business capital and government revenue. The GST administration has undergone tremendous transformation since its introduction on July 1, 2017, says Deloitte survey, which was released Tuesday.
The survey also found that business has accepted the simplified tax regime, as 88 per cent of MSMEs reported a reduction in goods and services cost with optimised supply chains.
The survey further revealed that 80 per cent of business leaders expressed that the time has come for the next phase of GST regime reforms to boost the ease of doing business and sectoral growth in the next few years.
The survey further revealed that respondents of the survey acknowledged the need of introducing an amnesty scheme, essential for resolving existing tax disputes that had tied up business capital and government revenue. 70 per cent of business leaders reaffirmed their positive dependence on evolving aspects of GST law, i.e., a 10 per cent increase from the preceding year.
Mahesh Jaising, Partner and Leader, Indirect Tax, Deloitte India, said, “India Inc. is very positive towards the changes facilitated by the GST regime and the increasing supply-chain efficiencies. India Inc. continues to look forward to the continued promotion of EoDB reforms, working capital rationalisation, and reductions in input tax restrictions. The 22 per cent YoY growth in GST revenue is testimony to the overall economic development and tax-payer-centric administration.”
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"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 further added.
There are more than 612 senior leaders from different industries and companies tracking the impact of GST across industries which include consumer, technology, media and telecommunications, energy resources, financial services, life sciences, and government and public services.