Of those who view the GST reform as positive, 56% believe it has led to competitive pricing of goods and services, 45% believe it has led to supply chain optimization, while 38 % believe it has led to a reduction in the cost of goods and services.
71% of executives believe that unlocking the working capital freeze can boost growth. This was followed by removing input tax credit restrictions (61%) and streamlining GST rates across the supply chain (58%). Expanding the GST net to include non-GST goods and services and solving reverse duty structures were also in the top five demands of industry leaders.
74% of executives believe that the government should continue to focus on creating a simplified tax system to promote the ease of doing business.
The increase in tax regulations and reporting requirements from tax authorities is ranked as the top issue in GST law and compliance. This was followed by double investigations by multiple tax authorities or investigative agencies and an investment of time and effort in managing GST compliances. Leaders also say the need for a faceless assessment under the GST should be assessed.
Changes that could further improve the ease of doing business, input tax credit (ITC) reforms and improved dispute resolution for litigation management are the main areas the government should prioritise.
The reform of the GST completes five years on July 1, 2022. It has been brought to simplify the system of indirect taxes.