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EY India has called for easier GST compliance for businesses, including a more efficient input tax credit (ITC) system, continued improvements to refunds and registrations, and—in its Budget 2026 proposals—ITC eligibility for essential services and centralised GST registration for large taxpayers. These are recommendations reported in January 2026, not evidence of changes to GST law.
What EY India is asking to change
A Business Standard report published January 15, 2026 says EY India proposed two GST changes aimed at reducing business compliance burdens:
- Allow ITC on essential services in technology, media and telecommunications (TMT).
- Enable centralised GST registration for large taxpayers rather than requiring businesses to manage registrations separately across locations.
The report presents both as Budget 2026 recommendations. It does not establish that either proposal was adopted, or set out a complete account of current ITC eligibility and refund rules.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsWhy EY says credit blockages matter
In an EY India discussion marking nine years of GST, Bipin Sapra, EY India’s partner and indirect tax policy leader, said businesses wanted credit rationalisation: identifying blockages and making the credit system more efficient. He argued that this could reduce product costs and improve operating efficiency. Those are EY’s stated reasons for reform, not measured outcomes in the discussion.
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ITC is the mechanism through which an eligible business claims credit for GST paid on business inputs, subject to applicable rules. When credit cannot be claimed or accessed as expected, it can remain a cost or tie up working capital. EY’s call to address blockages is therefore related to, but not identical with, its call to improve refunds: one concerns the efficiency and availability of credits, while the other concerns the process for receiving refund amounts where a refund is due.
Refunds, registrations and digital administration
Sapra said industry wanted continued improvements to refunds, registrations and other compliance processes. His comments identify business priorities; they do not quantify how long refunds take, how much credit is blocked, or the costs businesses face.
GST processes are substantially digital. Sanjay Mangal, a CBIC member responsible for GST, Central Excise and Service Tax, said registration, refund, return and legal-dispute processes are available through the GST portal and conducted digitally. Digital availability describes the channel, however; it does not mean every claim is approved quickly or that businesses encounter no procedural friction.
What centralised registration could address
EY’s centralised-registration proposal targets administrative complexity for large taxpayers, particularly businesses operating across multiple locations. A consolidated approach could reduce the burden of managing separate registrations, but the cited report does not specify how such a system would work, which taxpayers would qualify, or how local compliance obligations would be handled. Those details would need to be established in any adopted policy.
What has and has not been established
The proposals should be read as advocacy for possible policy changes, not as a description of new entitlements. The cited reporting does not confirm their enactment. It also does not provide a specific figure for delayed refunds, blocked ITC, or compliance costs, so no such estimate can be inferred from the recommendations.
EY’s nine-year discussion cited growth from 68 lakh taxpayers at GST implementation to more than 1.6 crore at the time of that discussion. The figures provide scale for the system’s expansion, but are not a measure of refund performance or the effect of EY’s proposals.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Where GST compliance software fits
Policy changes and software address different parts of compliance. EY describes enterprise GST platform functions such as reconciliation, return filing, e-invoicing and automation. Those tools can support business workflows, but they cannot create ITC eligibility or guarantee a refund; those depend on applicable rules and administration. EY’s platform description is available on its GST services page.
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