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