The Central Goods and Services Tax (CGST) department is preparing to introduce a new faceless tax assessment system, with a pilot scheme expected to roll out in the coming months. This initiative, inspired by the direct tax regime's successful model, seeks to significantly reduce direct interactions between tax officials and taxpayers.
Boosting Ease of Doing Business with Technology
Sources indicate that the trial phase for CGST assessees could begin within the next three to four months. The primary objective is to enhance the ease of doing business by minimizing physical contact and promoting a more transparent, technology-driven process for tax scrutiny.
How the Faceless System Will Work
Under the proposed scheme, all scrutiny assessments will be conducted entirely online. Cases will be selected and assigned to officers randomly, leveraging artificial intelligence and advanced technological tools. This approach is designed to ensure impartiality and reduce any potential for undue influence or delays associated with traditional physical interactions.
The proposal is specifically tailored for CGST operations, meaning it will not require immediate approval from the broader GST Council. However, should the pilot prove effective in streamlining processes and improving compliance, individual states may later opt to adopt similar systems by presenting proposals to the GST Council for consideration.
This move aligns with the broader goals of the GST administration to lighten the compliance load on businesses and transition towards a more efficient, technology-centric tax framework.