Faceless adjudication under GST begins in Kerala
The Kerala State GST Department will roll out a faceless adjudication system under GST from Friday, August 2, 2025, as a pilot initiative. This move aligns with the Centre’s larger goal of enhancing transparency, reducing personal interface, and speeding up indirect tax dispute resolution.
What is Faceless Adjudication in GST?
Faceless adjudication is a tech-based system where assessment and adjudication proceedings happen without direct face-to-face interaction between taxpayers and officers.
Inspired by the Income Tax faceless schemes, this model is expected to reduce subjectivity, bias, and delays in handling GST disputes.
Key Features of the Pilot Scheme in Kerala
- Starts: August 2, 2025
- Scope: Select adjudication cases under Kerala SGST
- Process: Taxpayer receives notices, replies, and orders digitally
- Communication Mode: All via GST portal or email—no in-person hearings
- Allocation: Cases assigned randomly to officers across the state
- Aim: Eliminate regional influence and build a uniform dispute resolution process
How Faceless Adjudication under GST Works
Here’s a simple step-by-step breakdown:
| Step | Action |
|---|---|
| 1 | Show cause notice (SCN) is issued digitally |
| 2 | Taxpayer files reply online within prescribed timeline |
| 3 | Officer examines records and submissions digitally |
| 4 | Opportunity for clarification may be given via email |
| 5 | Final adjudication order is uploaded on GST portal |
No personal appearance or physical documentation required unless specifically requested.
Legal Framework Behind This Initiative
While GST law does not explicitly use the term “faceless adjudication”, this is being implemented under the general adjudication powers granted by:
- Section 73/74 of CGST & SGST Act (Demand and Recovery)
- Section 75 (General procedure for adjudication)
- Section 168 (Commissioner’s power to issue instructions)
The Kerala SGST Commissioner is exercising delegated authority under these sections to notify procedural changes for the pilot.
Benefits of Faceless GST Adjudication
- Reduced corruption risk due to absence of personal interface
- Faster resolution with digital workflows
- Taxpayer convenience—no travel, physical appearances, or delays
- Audit trail of every communication for better accountability
- Uniformity in decision-making across the state
Challenges & Safeguards Needed
- Ensuring data security and portal stability
- Providing training for adjudicating officers
- Redressal mechanisms for technical glitches or biased orders
- Addressing language and accessibility concerns for small taxpayers
Expert View
According to tax practitioners, faceless adjudication could drastically reduce regional-level harassment but needs centralised SOPs and review mechanisms to prevent mechanical assessments.
Tip for taxpayers:
Always respond within timelines and maintain proper digital documentation when dealing with faceless assessments.
What’s Next? National Rollout?
If successful, this pilot in Kerala could be the model for nationwide adoption of faceless adjudication under GST. A similar recommendation was also discussed in past GST Council meetings as part of e-governance push.
FAQ: Faceless GST Adjudication
Q1. Can I still request a personal hearing?
A: Yes, under Section 75(4) of CGST Act, a personal hearing can be requested, but it may be granted at the officer’s discretion under faceless mode.
Q2. What happens if I don’t respond to the digital notice?
A: The officer can proceed to pass an ex-parte order under Section 75(6).
Q3. Is this applicable to central GST officers too?
A: No, the current pilot is under the Kerala State GST department only.
Final Thoughts
Kerala’s faceless adjudication under GST is a welcome reform—aiming for speed, fairness, and digital convenience. Taxpayers must adapt quickly by digitising their records and ensuring timely online responses.
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Summary
Kerala introduces faceless adjudication under GST from August 2, 2025. Learn how the digital process works, its legal basis, and why it matters for taxpayers.