The State Goods and Services Tax (SGST) department is piloting a ‘faceless adjudication’ in Kerala from August 1.
In this system, the adjudicating authority and the taxpayer will not interact directly with each other. All procedures related to taxation will be carried out through digital platforms and electronic communication.
From August 1, the faceless adjudication system will be piloted in Pathanamthitta and Idukki districts. The system’s roll-out will make Kerala the first Indian State to introduce it for indirect taxes, the department said.
Finance Minister K.N. Balagopal had announced plans to introduce it in connection with the 2025 State Budget. The system is designed to guarantee fair, fact-based and unbiased taxation, R. Sreelakshmi, Additional Commissioner, SGST, said on Thursday.
All procedures related to taxation – right from the point where a taxpayer is issued show-cause notice and all subsequent steps including the filing of its reply, hearing, and the issuance of the final order will be conducted online.
The ‘faceless adjudication system’ does away with the need for the taxpayer to visit the offices of the SGST Department. The taxpayer’s version on show-cause notices will be heard by a ‘faceless adjudicating authority’ via an online meeting platform. For submitting supporting documents, taxpayers can use the GST common portal.
The Union government had introduced a similar system for income tax, which is a direct tax. This is the first instance of a State government rolling it out for indirect taxes, the SGST department said.
