AI in GST: Plugging Leakages Without Harassing Small Businesses

The integration of Artificial Intelligence and data analytics to curb GST leakages and detect tax evasion is a welcome step. However, this technology should aim to facilitate ease of doing business rather than just acting as a punitive tool. The government must ensure that automated notices and rigid algorithms do not end up harassing compliant small businesses and startups. A balanced approach—combining advanced technology with fair human oversight—is essential to build a transparent, trust-based, and efficient tax ecosystem.