GST industry survey: Assessing impact, challenges and reform imperatives

The survey by FICCI and KPMG in India seeks to assess industry experience, evaluate recent reforms, and identify priorities for a simpler, more efficient, and technology-enabled GST regime.

Nine years after its introduction, GST stands as a landmark 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.

Key highlights of the report

Ease of doing business under GST

GST has matured considerably with greater digitisation and transparency; however, addressing concerns around registration amendments, ITC reconciliation, IMS compliances, and refund timelines remains critical for improving taxpayer experience
GST rate rationalisation
- Resolution of inverted duty structure - key industry ask
- Refund of IDS credits on input services and capital goods
- Improved working capital efficiency through greater flexibility in utilisation of available tax credits
Dispute resolution framework and tax administration practices
- Stronger GSTAT framework with efficient digital appeal mechanisms
- Centralise audits for businesses with multi-state presence
- Time-bound completion of audits and proceedings
- Consistent tax administration through uniform interpretations, sector-focused audits
Digitisation of GST process
- Integrated GST ecosystem across GST, Customs, e-Invoicing and ERP platforms
- AI-driven compliance and reconciliation
- Seamless digital infrastructure with minimal manual intervention
Proposed GST reforms
- Broader GST coverage through inclusion of key sectors such as oil and gas
- Flexible credit utilisation, including cross-utilisation of CGST
- Trust based administration framework

Overall sentiment towards GST remains positive, with respondents acknowledging benefits such as a unified tax regime, seamless interstate trade, improved transparency, and digital compliance. The focus now is on simplification, certainty, and reducing litigation in the next phase of GST evolution.