“The industry finds good commodity and services tax, but it calls for clarification and the resolution of the strongest conflicts”: Report

After eight years of the goods and services tax system (GST), the Indian industry is largely optimistic about its transformative impact, but it wants the government to face continuous challenges on legal clarity and conflict resolution.

A recent survey conducted by Deloitte revealed that 85 % of companies have a positive view of GST, thanks to tax reform with simplification of compliance, digitization processes, and improving the efficiency of the supply chain. However, companies across sectors – from manufacturing to information technology and banking services – are still critical gaps, especially around mysterious legal provisions and management of tax disputes.

“The GST trip was a big jump forward for the ease of doing business, but the complexities of the law still leaves the companies exposed for uncertainty,” the report indicated.

Among the strongest demands is to pay bold repairs to improve the ease of doing business. Industry leaders urge government to simplify export rules, unify registration procedures, accelerate recovered amounts, and allow more flexible use of tax credits (ITC).

“It is certain that the goods and services tax have reduced logistical troubles and united the market,” said one of the senior executives from the consumer sector, and quoted in the survey. “But the amounts recovered in a timely manner and clarity in the new business models are still important obstacles.”

Conflict resolution appeared as one of the most urgent pain points. Companies have highlighted issues such as hasty tax requirements, long reviews, and unexplored legal interpretations that increase litigation and stress resources. The poll found that approximately 44 % of the audit operations now lead to demand orders, which is a sharp leap of 30 % in 2024, indicating an increase in auditing from the tax authorities.

“There is a large-scale agreement that although the government has introduced some positive measures-such as the investigation instructions that have been simplified and reduce the requirements of the pre-duty-the implementation at the ground level is still lacking consistency.”

The respondents in the industry emphasized that the closure of the scrutinized scrutiny with just time and orders, logical requests in the appeal procedures should be top priorities under GST 2.0.

The report concluded that “there is optimism about the government’s willingness to cooperate in reforms.” “But companies want to ensure that the reforms will be implemented effectively, not only announced.”

MSMES, in particular, has expressed concern about multiple and intertwined procedures between the central and state authorities, which increases the costs of compliance and the drainage of the frequency range.

Despite these concerns, the survey confirms that GST has successfully became the backbone of the indirect tax system in India, which leads to digital numbering and improving competitiveness. But for GST 2.0 to provide their promise, companies insist that the next stage must address legal mystery, ensure a unified application of rules, and build a more predictable ecosystem.