EY India's Rajiv Memani pushes for GST reforms to boost FDI and economic growth

India's GST Council is set to address key issues hindering the growth of foreign direct investment (FDI) and the overall economy. According to EY India chairman and CEO Rajiv Memani. The head of the country's largest tax advisory firm.

Which provides services to leading corporate names. Said that the GST Council should speed up refunds and simplify the process of accumulating input tax credits. This includes for services and capital goods.

Memani, who is leading the charge for GST reforms, emphasized the importance of making the tax system more user-friendly, particularly for small and medium-sized enterprises (SMEs). GST 2.0 has been reasonably successful, but right now, we should look at how you can make GST more user-friendly, he said.

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GST refunds, audits should be simplified as companies are having multiple audits, which should be consolidated at the central level.

Memani also expressed his desire to decriminalize the filing of GST returns and make the process easier for businesses. He pointed to the success of the rate and process rationalization initiative taken last September, which, he said. has been highly successful.

"You're seeing good growth in India relative to other parts of the world is due to the reforms that have been undertaken. The most significant, tangible impact has been from GST reforms," he said.

Memani also highlighted the importance of addressing issues related to direct tax disputes as part of efforts to step up FDI inflows. He suggested that the government should adopt an inter-ministerial approach to resolving issues flagged by large investors, which can boost inflows. "We can cross $100 billion FDI this year and double that in three years.

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The opportunity is humongous." he said.

According to the RBI, FDI flows were estimated at around $97 billion in 2025-26 and grew 12.5% to $43.9 billion during April-July. The growth in consumer goods and automobiles has been powered by rate cuts and procedural simplification, according to Memani.

The GST Council is expected to address the key issues hindering FDI growth and economic growth. The council's meeting is scheduled for this week, and Memani hopes that the reforms will be implemented soon. he said.