85% of Indian businesses express confidence in GST, up from 59% in 2022, citing reforms, digitisation, and collaboration. A Deloitte survey highlights rising support for GST 2.0, calls for rate rationalisation, export liberalisation, and improved compliance tools amid record-high collections in May 2025.
As India marks eight years since the rollout of the Goods and Services Tax (GST), confidence in the tax regime has reached an all-time high, according to a recent survey by Deloitte India. The report reveals that 85% of Indian businesses now express confidence in the GST framework—a significant rise from 59% in 2022. This sharp increase underscores the effectiveness of continuous reforms, improved digitisation, and constructive government-industry collaboration.
A Milestone Moment for India’s Tax Landscape
Since its inception in 2017, GST has undergone numerous changes aimed at simplifying and unifying India’s complex indirect taxation system. As the country celebrates this milestone, the business community’s robust endorsement of the GST system signals a maturing compliance environment and growing trust in the policy direction.
“Eighth anniversary of the GST regime marks a significant milestone, with India Inc showing sustained optimism towards the tax framework,” said Gokul Chaudhri, President of Tax at Deloitte India. He added that automation of tax processes—such as e-invoicing and auto-population of returns—has delivered tangible benefits. Businesses are also appreciative of the government’s proactive and collaborative stance in addressing industry concerns through timely clarifications.
2024: A Pivotal Year for Reforms
The year 2024 marked a transformative phase for GST with a range of impactful reforms. These included the streamlining of the investigation process, clarifications on valuation, steps to curb unnecessary litigation, export-focused incentives, and measures to reduce working capital burdens. The quantum of pre-deposits was also brought down, offering relief to many businesses.
Such measures have not only improved ease of compliance but also built greater trust among stakeholders. Mahesh Jaising, Partner and Indirect Tax Leader at Deloitte India, noted, “To fully realise the objective of GST 2.0, India must prioritise forward-looking reforms, AI-powered compliance tools, effective grievance redressal mechanisms, and a more inclusive and agile tax ecosystem.”
Room for Improvement: Implementation Challenges Remain
Despite the overall optimism, the survey highlighted ongoing ground-level challenges. In 2025, 67% of respondents reported implementation issues, a jump from 55% in 2024. While GST circulars have improved policy clarity, inconsistencies in execution continue to be a roadblock for many.
The Deloitte report urges the GST Council to address these gaps through enhanced training, streamlined dispute resolution mechanisms, and clearer audit procedures. Businesses also expect reforms in GST rate rationalisation to reduce complexity and promote consistency across the supply chain.
Export Liberalisation Emerges as Top Priority
Interestingly, the survey shows a significant shift in business priorities for GST 2.0. Export liberalisation, which ranked fourth in 2024, is now the top priority in 2025. This change reflects a strategic push by Indian businesses to strengthen their global competitiveness and boost outbound trade.
Additionally, the report calls for a more tailored policy approach for Micro, Small and Medium Enterprises (MSMEs), acknowledging their unique challenges within the GST ecosystem.
Encouraging Growth in GST Collections
Another sign of GST’s strengthening framework is the growth in collections. In May 2025, India’s gross GST revenue reached ₹2.01 lakh crore, representing a 16.4% increase over May 2024’s ₹1.72 lakh crore. This surge in collections not only signals increased compliance but also reflects a broad-based economic recovery and improved tax administration.
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Way Forward
With businesses overwhelmingly backing the GST system and calling for GST 2.0 reforms, the path ahead is clear. Policymakers must now focus on streamlining administration, rationalising rates, adopting technology-driven tools, and ensuring inclusivity—especially for smaller enterprises.
The findings from the Deloitte survey, based on 963 senior executives across eight industries, offer a roadmap for future reforms. As India strives toward a $5 trillion economy, a robust and responsive GST framework will be instrumental in achieving this vision.
