The State Goods and Services Tax (SGST) department in Kerala has launched a pilot for a ‘faceless adjudication’ system starting today. The move aims to enhance transparency and efficiency by eliminating physical interaction between taxpayers and tax authorities.
Under this new system, all tax-related proceedings—including the issuance of show-cause notices, submission of replies, hearings, and final orders—will be carried out entirely through digital platforms and electronic communication.
The pilot project is being rolled out in Pathanamthitta and Idukki districts. With this launch, Kerala becomes the first state in India to implement faceless adjudication for indirect taxes.
Announced by Finance Minister K.N. Balagopal as part of the 2025 State Budget plans, the system is designed to ensure fair, transparent, and impartial tax administration. “The system is fact-based, unbiased, and will do away with the need for taxpayers to physically visit SGST offices,” said R. Sreelakshmi, Additional Commissioner, SGST.
Taxpayers will now present their side in response to show-cause notices through an online meeting platform where the adjudicating officer will also remain faceless. Supporting documents can be uploaded via the GST portal.
The Centre had earlier implemented a similar faceless mechanism for income tax matters. This marks the first instance of a state government extending such a model to the domain of indirect taxation.
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