The government is planning to introduce a faceless assessment system for Central GST (CGST) registrations, modelled on the system followed by the Income Tax Department, according to Finance Ministry sources.
The proposed mechanism is aimed at reducing direct interaction between taxpayers and tax officers and simplifying compliance, particularly for large businesses with GST registrations spread across multiple CGST jurisdictions, sources told NDTV Profit.
The CGST administration currently covers around 6.5 million registrations, which could eventually come under the proposed faceless assessment framework. Around 3.3 lakh registrations currently span multiple CGST jurisdictions, making a unified assessment mechanism particularly relevant for large businesses, sources added.
Under the proposed system, tax assessments could be allocated electronically and handled through a centralised, technology-driven framework instead of being linked solely to the jurisdiction where a particular GST registration is located.
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The Centre plans to pilot the faceless assessment mechanism in the coming months. The framework is expected to draw on the experience of the Income Tax Department's faceless assessment system as well as faceless processes already implemented by Customs.
The proposed initiative would initially apply only to CGST registrations administered by the Centre. As a result, the government does not require approval from the GST Council for the proposed system, sources said.
State GST administrations could consider adopting a similar mechanism at a later stage.
The government is currently working on the framework and is likely to seek feedback from stakeholders. A public consultation on the proposed system could be initiated by December, sources said.
The move is part of the Centre's broader effort to use technology to streamline tax administration, reduce taxpayer-officer interface and improve ease of compliance.
For large companies with multiple GST registrations, a unified faceless mechanism could also help reduce duplication in assessments and provide greater consistency in the handling of tax-related proceedings.
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