Algorithmic Enforcement Under GST: Re- Examining Natural Justice In India’s Automated Tax Administration
- IJLLR Journal
- 11 hours ago
- 1 min read
Saptashwa Banerjee, Symbiosis Law School, Pune
ABSTRACT
The Indian Goods and Services Tax (GST) regime represents a paradigmatic shift toward a "technology-first" administrative model, underpinned by the digital architecture of the GST Network (GSTN). While this transition was designed to enhance efficiency and uniformity, it has catalysed a transformation in enforcement where human discernment is increasingly replaced by system-generated triggers and algorithmic risk-profiling. This article identifies a burgeoning "black-box" challenge, where taxpayers are subjected to adverse civil consequences based on proprietary logic and opaque data weightage, leading to a profound asymmetry of information.
The paper argues that the current automated enforcement architecture characterized by "mechanical" adjudication, perfunctory hearings, and a lack of transparent parameters threatens the bedrock principles of natural justice and the constitutional guarantee of non-arbitrariness under Article 14. By analysing recent judicial interventions, the study observes that Indian courts have largely focused on corrective relief for individual cases rather than addressing the structural design of these enforcement technologies.
Drawing on international frameworks such as the OECD’s Tax Administration 3.0 and European data protection norms, the article proposes a transition toward "algorithmic constitutionalism". It recommends a structural overhaul of the GSTN to include Explainable AI (XAI) standards, a statutory "Human-in-the-Loop" (HITL) requirement, and the establishment of an independent algorithmic audit committee. Ultimately, the paper concludes that while technological efficiency is a potent instrument for governance, it must remain subordinate to the enduring constitutional imperatives of transparency, accountability, and fairness.
Keywords: GSTN, Algorithmic Enforcement, Natural Justice, Article 14, Explainable AI (XAI), Human-in-the-Loop, Tax Adjudication.
