AI AND BIG DATA IN INDIRECT TAX ADMINISTRATION: AN EMPIRICAL ASSESSMENT OF OPPORTUNITIES AND CHALLENGES UNDER INDIA’S GST REGIME

Abstract

The ongoing digitalisation of tax systems has produced unprecedented volumes of transactional data. Artificial Intelligence (AI) and Big Data analytics have emerged as critical tools for modern indirect tax administration, promising enhanced compliance monitoring, fraud detection, and service efficiency. This study investigates the extent, efficacy, and perceived implications of AI and Big Data in indirect tax governance, with specific reference to India’s Goods and Services Tax (GST) system. A mixed-method research design combines a review of international practices with an empirical survey of tax professionals, MSME representatives, and tax administrators.