Kerala becomes the first Indian state to implement a fully digital adjudication process for State GST matters.
In a major digital governance initiative, the State Goods and Services Tax (SGST) Department of Kerala has introduced a pilot project for ‘Faceless Adjudication’, starting August 1, 2025. The system aims to revolutionize tax administration by eliminating direct interaction between taxpayers and tax officers, thereby ensuring transparency, efficiency, and impartiality.
Pilot Rollout in Pathanamthitta and Idukki Districts
The faceless adjudication system is being piloted in the Pathanamthitta and Idukki districts, making Kerala the first state in India to implement such a system for indirect taxes. This digital adjudication model is inspired by the Union Government’s faceless assessment mechanism introduced earlier for income tax, which deals with direct taxes.
What is Faceless Adjudication?
Under the new system, taxpayers and adjudicating officers will not engage in face-to-face interactions. Instead, all proceedings—right from the issuance of a show-cause notice to submission of replies, conducting of hearings, and passing of final orders—will be conducted entirely through digital platforms.
Key Features:
- 100% digital communication between the SGST department and taxpayers.
- Online hearings via a secure virtual meeting platform.
- Use of the GST common portal for uploading supporting documents and submissions.
- Complete elimination of the need to visit SGST offices in person.
Promoting Transparency and Fairness
The initiative is part of the Kerala government’s broader vision to modernize tax administration. As announced by Finance Minister K.N. Balagopal during the 2025 State Budget, the system aims to promote fair, fact-based, and unbiased taxation. According to R. Sreelakshmi, Additional Commissioner, SGST, the faceless system will help minimize subjectivity and improve taxpayer convenience.
A Milestone in Tax Reforms
With this digital transformation, Kerala sets a benchmark for other Indian states in the realm of e-governance in taxation. By introducing faceless adjudication for GST, Kerala not only enhances administrative efficiency but also improves taxpayer trust and ease of compliance.