GST at 9: Businesses seek simpler compliance, faster refunds and AI-led tax administration, says KPMG-FICCI survey

Nine years after the rollout of the Goods and Services Tax (GST), Indian businesses continue to view the indirect tax regime positively for improving transparency and creating a unified national market, but they are seeking a simpler compliance framework, faster refunds and greater certainty in tax administration, according to a joint survey by KPMG in India and FICCI.

The GST Industry Survey 2026, released on Thursday ahead of GST completing nine years, found that while digitisation has significantly improved tax compliance, persistent challenges around input tax credit (ITC) reconciliation, registration amendments, refund delays and litigation continue to weigh on businesses.

Overall industry sentiment towards GST remains favourable, with respondents crediting the tax regime for enabling seamless interstate trade, improving transparency and promoting digital compliance. The survey noted that the next phase of GST reforms should focus on simplification, certainty and reducing litigation.

The survey showed that 52% of respondents rated GST as good for ease of doing business, while another 35% described the experience as satisfactory. However, businesses flagged compliance complexity as a major concern, particularly in registrations, return filing and ITC management.

Nearly 59% of respondents described the GST registration process as complex and time-consuming, with industry seeking quicker amendments, automated approvals, single-window registration for multi-state businesses and greater standardisation across jurisdictions.

Compliance also remains a pain point, with 57% of respondents saying GST return filing is moderately complex and 15% calling it highly cumbersome. Businesses want simplified return formats, consolidated filing timelines and greater automation through auto-filled returns.

On refunds, respondents highlighted delays in processing export and inverted duty structure (IDS) claims. Faster, system-driven refunds, reduced manual intervention and mandatory interest on delayed payments emerged among the top recommendations. Businesses also urged the government to allow refunds of accumulated ITC on input services and capital goods under the inverted duty structure to ease working capital pressures.

The survey also underscored the growing role of technology in tax administration. Around 46% of respondents reported moderate digital adoption in GST compliance, while 32% said they are exploring or piloting artificial intelligence and advanced technologies for GST processes. However, legacy ERP integration, data reconciliation issues and implementation costs continue to hinder wider adoption.