Welcome to another Friday, chief!

In today’s edition — GST just turned eight, and like a typical eight-year-old, it’s still figuring things out, reveals a Deloitte survey. The document says tax disputes are rising, MSMEs are struggling, and the system’s far from smooth. Also, let's delve into the annals of history — the city of Dubai could have been part of India, if not for a royal telegram from the British in April 1947.

GST Turns 8, but It’s Still Fussy

Vishwas Ved

GST turned eight recently. And like any eight-year-old, it’s indeed come a long way. At the same time, it also reminds us that growing up is rarely smooth and without growing pains.

At least that’s what a recent Deloitte survey — GST@8: Learning from the Past, Defining the Future — reveals about the country’s indirect tax system. 

The survey has several interesting takeaways derived from the inputs of over 950 business leaders across sectors. But two themes particularly stand out in the report: 

One, how we’re handling tax disputes, and second, what life under GST really looks like for MSMEs.

Disputes, Delays, Long Waits

Let’s start with disputes. 

It turns out that 44% of audits in 2025 ended in demand notices, up from 30% last year, the report finds out. That’s a big jump. Ideally, compliance should be improving with time, but unfortunately, it’s not happening.

Worse, many of these notices seem rushed, often issued just before deadlines, without much explanation. Think of it as last-minute homework with barely legible answers.

Then there’s the fact that the GST Appellate Tribunal, which was supposed to help find a way out of tax disputes, still isn’t up and running.

So where do you go if you want to appeal a decision? Straight to the high court. Which, let’s be honest, isn’t ideal for handling standard tax disputes.

What businesses are asking for isn’t extraordinary. Reasonable timelines, clarity in rulings, and a system that listens. 

It’s the kind of basic structure that builds trust, and saves time, money, and courtroom frustration.

MSMEs: Stuck in Slow Lane

For smaller businesses, the GST journey has been even tougher, the survey reveals.

Yes, the government has introduced helpful steps like quarterly returns and relaxed registration limits. But MSMEs are still grappling with real issues such as cash flow bottlenecks, refund delays, and complex compliance.

Many don’t have the tech muscle that big companies do. So when a notice comes or a new process is introduced, they are running helter-skelter looking for a suitable response to it. 

In fact, only half of MSMEs say they feel ready for GST audits from an IT systems point of view, the report says.

One humble ask from them: automatic re-credit of rejected refunds. 

It’s small, but meaningful, like a policy that understands how cash crunches really work on the ground.

Where Do We Go From Here?

Eight years in, GST isn’t new anymore. It’s part of how we do business in India. But that also means the expectations are higher now. Businesses want a system that works better, not just digitally, but fairly and efficiently too.

It’s time for GST 2.0 to move past teething problems and step into its own. Disputes shouldn’t feel like endurance tests. And small businesses shouldn’t feel like they’re in a maze looking for a wayout.

The structure is there. The intent is there. What we need next is follow-through.

When Dubai Reported to Delhi

Dubai could have been just another Indian coastal city just like Mumbai.

Sounds absurd? Well, not too long ago, it was a real possibility, reveals a piece by Sam Dalrymple on BBC. 

You could have flown from Mumbai to Abu Dhabi, not on a passport and a visa, but with your Aadhaar. 

Here’s what happened:

Back in the early 1900s, large parts of the Arabian Peninsula, including Dubai, Abu Dhabi, Oman and even Kuwait, were being run from... Delhi. Yes, the Gulf was considered part of British India.

These areas were protected by Indian troops, governed by officers trained in India, and even used Indian passports. In fact, Indian passports used to be issued even in Aden, which is now in Yemen.

The Indian influence was so strong that the Sultan of Oman, who studied in Rajasthan, spoke better Urdu than Arabic. Local armies wore Hyderabadi uniforms. The dhobi, chowkidar and bearer were all from India. And Sundays in Dubai meant one thing: a big, British-Indian-style curry lunch.

Yet when India and Pakistan were getting closer to independence, the British quietly redrew the map. 

On April 1, 1947, just months before the British Raj ended, the Gulf was separated from India. No headlines. No public debate. Just a royal telegram from King George VI and the matter was closed.

If that decision hadn’t been made, the Gulf could easily have become part of India or Pakistan — just like Hyderabad or Mumbai. Instead, the Gulf became Britain’s last colonial crush, which they finally let go in 1971.

Today, millions of Indians live and work in Dubai, unaware that their grandparents could have been citizens of a United Arab Desh. 

The cord was cut quietly. And history moved on.

But next time you’re stuck in Dubai traffic or negotiating with a cabbie there in Hindi, remember: it almost, almost, became home.

₹10,324 Crore

Accumulated losses of the Maharashtra State Road Transport Corp (MSRTC) surged to ₹10,324 crore in FY 2023-24 from ₹4,603 crore in 2018-19 and the state-owned body clocked profit only in eight fiscal years in the last 45 years, said a 'white paper' released this week. Transport Minister Pratap Sarnaik, who is also MSRTC chairman, said the possibility of the corporation coming out of huge losses anytime soon is very slim, but efforts were on to improve its financial condition as he announced induction of more buses and measures to boost revenue.

—Portugal tightens citizenship rules. Portugal has tightened its citizenship rules, extending the wait period for most foreigners to ten years from five. The new measures were announced this week by Presidency Minister Antonio Leitao Amaro. To qualify, applicants will also be required to prove knowledge of the Portuguese language and an understanding of the country's culture. The move comes as Portugal faces a sharp rise in its foreign population. The country now has roughly 1.6 million foreign residents, making up about 15% of its total population, almost three times the number in 2019.

—Air fares surge post Ahmedabad plane crash.  Following the Ahmedabad plane crash, a sharp increase in air ticket prices is observed, something that can be described as price gouging, or charging excessively high rates. According to reports, nearly 41% of tickets have been cancelled. A travel agent mentioned that a ticket, which was priced slightly above ₹6,000 before the accident, is now being sold for around ₹34,000. Most people are now said to be avoiding flying in a Boeing aircraft.

—New CFO of P&G HHC. Procter & Gamble Hygiene and Health Care Ltd has appointed Gaurav Bhartia as the company’s CFO from July 1, 2025. Bhartia joined P&G in 2013 as an intern and then full-time in 2014. He has worked in the company for 11 years, primarily in India and West Asia. He is an alumnus of IIM-Bangalore and currently heads sales finance for P&G India.

—JioHotstar nears Netflix with 300 mn subscribers. JioHotstar has reached 300 million subscribers, driven by massive reach and viewership numbers during the IPL. With this, it has inched close to Netflix. In 2024, the US-based global streaming platform present in over 190 countries, had about 301.63 million subscribers, according to the data compiled by Statista. In comparison, Amazon Prime Video has over 200 million Prime members.

—US Steel names Kevin Lewis as CFO. US Steel said this week that Kevin Lewis would replace CFO Jessica Graziano effective immediately, days after the steelmaker closed its sale to Japan's Nippon Steel. Graziano, who has spent nearly three years at the company, would stay on as a special advisor until July 18 to aid with the transition, US Steel said. Lewis, who joined the Pittsburgh-based steelmaker 17 years ago, has held key positions across finance, strategy and investor relations.

ICYMI | Log In or Lose Out

Missed last week's update? Madras HC says GST officers must do more than just upload notices on their website so that businesses that fail to log in do not get penalised. Meanwhile, bank frauds, especially on UPI, are rising fast. RBI’s new AI tool tries to catch scammers, but a report says charging small fees could help improve security.

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