Rajasthan to Lead India with Faceless GST Tax Administration
Rajasthan will become the first state in India to introduce faceless/randomised tax administration. This initiative aims to improve transparency and efficiency in GST compliance across the state.
Key Highlights of the Initiative
Comprehensive Tax Scrutiny
The system will automate the scrutiny of GST returns for all 5.50 lakh taxpayers in the state. Previously, officials manually reviewed only 30,000-50,000 major taxpayers, covering just 5-10% of the total.
Pilot Phase in Jaipur and Jodhpur
The project will first launch in Jaipur and Jodhpur, with specially developed software supporting the new system.
Self-Scrutiny for Taxpayers
Taxpayers can now perform self-scrutiny to correct discrepancies in their GST returns. This feature promotes accountability and encourages individuals to address errors on their own.
Innovative Billing Software
Businesses can use an innovative invoicing tool to pay taxes directly while uploading their sales and purchase bills. This eliminates the need for separate GST return filings, simplifying the process.
Faceless Administration Features
Randomised Adjudication
Tax officials will receive case assignments through algorithms and AI. The random allocation ensures impartiality in the adjudication process.
Electronic Communication
Taxpayers and the administration will communicate through a common electronic interface, guaranteeing transparency in all interactions.
Workload Balance for Officials
The system distributes cases evenly among tax officials, preventing any official from becoming overburdened and reducing bias.
Budget Commitment by Diya Kumari
In her 2024-25 Budget speech, Deputy Chief Minister Diya Kumari pledged to implement faceless tax management in the commercial tax and excise departments in phases. This initiative aligns with her vision for clean, transparent, and efficient governance.
Benefits of the Initiative
- Transparency: The faceless system removes human bias and resolves jurisdictional conflicts, ensuring fairness for taxpayers.
- Efficiency: The system accelerates the scrutiny of tax returns and resolves errors more quickly.
- Ease of Doing Business: By simplifying compliance, the initiative encourages better adherence to GST rules.
- Equity in Workload: The system helps balance workloads, promoting fairness and preventing bias.
Future Outlook
Rajasthan’s move to a faceless GST tax administration could set a precedent for other states. If successful, the model may spread nationwide, improving transparency, accountability, and ease for taxpayers across India.
