Gujarat govt plans to deploy AI to detect ITC scams in GST
Gandhinagar: The Gujarat government plans to develop an AI-based system to tackle rising GST input tax credit (ITC) scams that are causing significant revenue losses.
The commercial tax department has partnered with the Bhaskaracharya National Institute for Space Applications and Geo-informatics (BISAG-N) to build a system using artificial intelligence and machine learning to identify fraudulent transactions and entities.
Officials said that around 29 crore ITC-related transactions are recorded annually in the state, making manual verification extremely difficult.
BISAG-N has already developed a large language model (LLM), which is currently under testing and will be further refined. The system will analyze transactions and flag suspicious activities and potential fraud.
The AI-based model is also expected to detect irregularities involving government officials in some cases.
Once fully developed and fine-tuned, the government plans to use the system extensively to improve monitoring, transparency, and efficiency in GST administration.
