By assigning unconnected assessors to evaluate cases, the system seeks to avoid bias and limit the need for appeals and litigation.
Published Aug 06, 2025 | 8:28 AM ⚊ Updated Aug 06, 2025 | 8:28 AM
Social media has become a platform for frustrated Indians to express grievances about a taxation system many describe as not only complex but bordering on extortion. (iStock)
In a landmark move to enhance transparency and efficiency, Kerala has become the first state in India to implement a “faceless adjudication” system in the indirect tax regime.
Launched on 1 August, the initiative marks a significant shift in how tax assessments are conducted, eliminating face-to-face interactions between taxpayers and adjudicating authorities. The digital system ensures that the entire adjudication process — from the issuance of show cause notices to hearings and final orders — happens online.
In the first phase, the reform will be rolled out in Pathanamthitta and Idukki districts on a trial basis. Announced by state Finance Minister KN Balagopal during the 2025 budget reply, the move is aimed at promoting fairness, reducing subjectivity, and improving the ease of doing business in the state.
By assigning unconnected assessors to evaluate cases, the system seeks to avoid bias and limit the need for appeals and litigation. Taxpayers can now respond via virtual hearings and submit documents through the GST Common Portal, saving time and ensuring their voices are heard.
While the Union government has adopted a similar approach for income tax, Kerala leads the way in applying it to state-level indirect taxes — setting a benchmark for others to follow.
