As India's Goods and Services Tax (GST) regime marks its ninth year, businesses are increasingly advocating for technology-driven reforms over mere tax rate adjustments. A recent Deloitte survey highlights a strong industry desire for advanced, AI-powered systems to transform GST compliance, potentially making it almost automatic.
AI Integration: The Next Frontier for GSTN 2.0
The report, titled “GST@9: The Next-Gen GST – Reform, Rationalise and Simplify,” indicates overwhelming support for artificial intelligence. According to Deloitte, 89% of respondents expressed a desire for AI-led data processing and reconciliation to be integrated into the proposed GST Network (GSTN) 2.0. This significant backing suggests that AI could be the most substantial upgrade to India's indirect tax system since its inception in 2017.
Businesses are no longer solely focused on reducing tax rates or minimizing compliance requirements. Instead, they envision a more intelligent GSTN platform capable of automating repetitive tasks, identifying discrepancies in real time, and significantly reducing the need for manual reconciliation. AI-enabled systems promise to help taxpayers detect errors proactively, enhance data accuracy, and ultimately lower compliance costs.
Smarter Portal Features and User Experience
The survey findings extend beyond basic automation, revealing a demand for a much more sophisticated GST portal. Companies expect GSTN 2.0 to offer features such as pre-filled GST returns, intelligent reconciliation tools, real-time status tracking, and seamless integration with existing e-way bills, e-invoicing systems, and Special Economic Zone (SEZ) portals. These enhancements are expected to eliminate duplicate data entry, boost efficiency, and drastically cut down the time spent on tax compliance.
Improving user experience is also a key concern. Approximately 53% of respondents called for unified dashboards to manage multiple compliance functions from a single interface. Furthermore, 42% sought longer access to historical data, while 34% emphasized the need for better portal performance, particularly during peak filing periods. These preferences underscore a shift in expectations, with businesses now seeking intuitive and intelligent tax technology rather than just digital platforms.
Beyond Technology: Policy Reforms Remain Crucial
While AI integration is a major focus, businesses acknowledge that broader policy reforms are equally vital for optimizing the GST system. The survey identified greater clarity in tax interpretation as the top structural priority for GST 2.0, with 85% of respondents highlighting its importance. Companies also called for faster refunds, more consistent audits, flexible input tax credit utilization, and simplified return filing to further improve the ease of doing business in India.
Deloitte believes that GST has transitioned from a phase of stabilization to one of optimization. After nearly a decade, the emphasis is now on enhancing user experience, alleviating compliance burdens, and leveraging technologies like AI to streamline tax administration. The report notes that digital adoption, responsive policymaking, and improved tax administration have collectively laid a solid foundation for the next generation of GST reforms.
A New Era of Confidence in GST
Remarkably, confidence in the GST regime has reached an all-time high. The survey revealed that 99% of respondents expressed either a positive or neutral view of the indirect tax system, with negative sentiment dropping to less than 1%. This reflects widespread industry acceptance and maturity nine years after its introduction.
As policymakers chart the course for GST 2.0, the survey suggests that the next major revolution may not involve altering tax slabs but fundamentally transforming how businesses comply. If AI-powered reconciliation, automated return preparation, and intelligent compliance tools become integral to GSTN 2.0, India's tax system could move significantly closer to a future where GST compliance is faster, more accurate, and, for millions of businesses, largely automatic.