TLDR: The National Academy of Customs, Indirect Taxes and Narcotics (NACIN), Mumbai, led by Principal Additional Director General Prabhat Kumar, has proposed an AI-driven ‘Multi-Agent System for GST Registration’ to prevent fraudulent GST registrations and associated Input Tax Credit (ITC) claims. This initiative comes in response to a significant rise in fake firms, with 25,009 identified in FY 2024-25, linked to fraudulent ITC claims totaling ₹61,545 crore.
In a significant move to fortify India’s Goods and Services Tax (GST) registration framework, the National Academy of Customs, Indirect Taxes and Narcotics (NACIN), Mumbai, has unveiled a comprehensive proposal to integrate Artificial Intelligence (AI) into the system. Spearheaded by Prabhat Kumar, Principal Additional Director General (Pr. ADG) at NACIN, Mumbai, the initiative aims to create a fraud-proof GST registration process.
The proposal, detailed in a report titled “Multi-Agent System for GST Registration,” was co-authored by Prabhat Kumar along with Joint Directors Manudev Jain and Vimalesh Kumar Singh. It advocates for the deployment of a Multi-Agent System (MAS)-powered Automated Document Authentication System (ADAS). This advanced system is designed to address the escalating issue of GST-related fraud and streamline the registration process.
The urgency of this proposal is underscored by alarming figures from the financial year 2024-25, which saw the identification of 25,009 fake firms. These entities were linked to fraudulent Input Tax Credit (ITC) claims amounting to a staggering ₹61,545 crore. The ADAS system is envisioned to combat such illicit activities by enabling cross-verification from trusted data sources and automating the detection of fraud indicators.
The authors of the report emphasize the critical need for a dedicated task force to oversee the implementation, governance, and training of the new system. This task force would comprise a diverse team of AI engineers, GST experts, and system architects, ensuring a holistic approach to the deployment.
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Prabhat Kumar highlighted that the ADAS system represents a transformative shift in India’s digital governance model. By leveraging AI, the system aligns seamlessly with the objectives of the Government’s Digital India mission, promising enhanced security and efficiency in the GST registration landscape.
