GST Council Hails AP’s AI-Powered Tax Administration as National Model

Andhra Pradesh’s efforts to bring Artificial Intelligence (AI) into tax administration are drawing attention at the national level, with officials from the GST Council Secretariat describing the state’s approach as a model that could be adopted by other states and the Centre.

A delegation led by GST Council Secretariat Additional Secretary Pankaj Kumar Singh (IDAS) and Joint Secretary D.P. Mishra (IRS) visited the Andhra Pradesh Commercial Taxes Department (APCTD) on August 10 as part of a two-day tour. The officials also called on Chief Minister N. Chandrababu Naidu during their visit.

The delegation reviewed the department’s use of AI across GST return scrutiny, audits, inspections, investigations and litigation management. Senior officials explained how technology is being deployed to detect discrepancies, strengthen compliance and make tax administration faster and more efficient.

The visiting officials also inspected the Vijayawada-1 Division, where they examined the field-level implementation of AI-based investigation and litigation systems. The visit allowed the delegation to assess how digital tools are being integrated into routine tax enforcement and decision-making.

The team later visited the GST Suvidha Kendra to review taxpayer services. It interacted with Joint Commissioners, Deputy Commissioners and taxpayers from the Vijayawada divisions to understand the effectiveness of the technology-enabled systems from both administrative and taxpayer perspectives.

At a meeting with the Chief Minister, the GST Council Secretariat officials praised the APCTD for using AI-based innovations to strengthen tax administration and revenue mobilisation.

They said the level of technological innovation being implemented by Andhra Pradesh was notable compared with practices in other states. The delegation described the state’s AI-based tax administration framework as a valuable model for the Centre and other states seeking to modernise their systems.

The officials also highlighted the potential of AI to simplify business-related tax processes, speed up administrative work and improve revenue outcomes through more efficient identification of discrepancies and potential tax evasion.

He urged the Centre to facilitate the required data-sharing mechanisms and provide continued support through GSTN. The Chief Minister said Andhra Pradesh had consistently embraced technology-led transformation, from the telecom and IT revolutions to infrastructure development and AI-enabled governance.

He said the state’s technology-driven tax systems should support speed and ease of doing business, while enabling authorities to improve compliance and revenue collection.

Naidu thanked the delegation for its visit and suggestions before felicitating the officials and presenting them with traditional mementoes.

The recognition from the GST Council Secretariat adds further momentum to Andhra Pradesh’s attempt to build a data-driven and AI-enabled tax administration system that combines stronger enforcement with faster and more efficient taxpayer services.