Kerala Pioneers Faceless GST Adjudication: A First in India

The State Goods and Services Tax (SGST) Department in Kerala is initiating a pilot project for a ‘faceless adjudication’ system starting August 1.

Under this model, there will be no direct interaction between the adjudicating authority and the taxpayer. All tax-related proceedings will be conducted entirely through digital platforms and electronic communication.

The pilot will initially be implemented in the Pathanamthitta and Idukki districts, marking Kerala as the first State in India to roll out such a system for indirect tax administration.

This initiative was earlier announced by Finance Minister K.N. Balagopal in connection with the 2025 State Budget. According to R. Sreelakshmi, Additional Commissioner, SGST, the system is intended to ensure fair, evidence-based, and impartial tax proceedings.

From the issuance of a show-cause notice to submission of reply, conduct of hearings, and passing of final orders—every stage of adjudication will be carried out online. Taxpayers will not be required to visit SGST offices physically. Responses to notices will be presented via an online platform to a ‘faceless adjudicating authority’, and all supporting documents can be submitted through the GST common portal.

While the Union government has already implemented a similar mechanism for direct taxes under income tax, this is the first time a State government is introducing such a system for indirect taxes.