GST rate rationalisation tops companies’ list of demands

Rate rationalisation under the goods and services tax (GST) remains the top priority for businesses, which are now seeking a simplified tax structure and fewer slabs with more items brought under lower tax brackets, found a recent survey. Sectors such as healthcare and financial services are pushing for rate rationalisation to promote sectoral growth, according to the latest GST@8 survey by Deloitte.

The survey, involving 963 senior corporate executives, found that more businesses are now confident about the stability of the GST system and that they feel it is now easier for companies to manage interstate trade, with the e-way bill system reducing corruption at checkpoints.

About 85% companies expressed their confidence in the GST system, up from 59% in 2022, saying that the regime has reduced overall tax burdens on businesses, enabling them to invest in new projects and support sustainable growth.

Digitalisation of compliance processes and proactive tax policy engagement have been key drivers of this trend, according to the respondents.

About 62% of respondents cited digitalisation as the most impactful reform, while 48% appreciated the government’s responsiveness. Businesses said over time they benefited from the seamless flow of input tax credit (ITC), standardisation of processes across states and improved refunds.

The survey highlighted opportunities to improve dispute resolution, with nearly 50% of large enterprises saying that audits had resulted in notices or demand orders.