Gujarat Plans to Digitally Track ITC Scam Using Advanced AI Model
The Gujarat government is planning to use Artificial Intelligence (AI) to stop GST input tax credit (ITC) scams that are causing losses of thousands of crores of rupees. These scams involve fraudulent claims of tax credits. Since the number of transactions is extremely high, it has become very difficult to check everything manually. So, the government wants to use AI and machine learning (ML) to detect suspicious activities.
To make this possible, the commercial tax department has partnered with Bhaskaracharya National Institute for Space Applications and Geo-informatics (BISAG-N). Around 29 crore ITC-related transactions are recorded in the state every year, making manual verification nearly impossible. The new AI system will help identify fake transactions and fraudulent businesses more efficiently.
BISAG-N has already developed a large language model (LLM), which is currently being tested. Once fine-tuned, all ITC transactions will be checked through this AI model. The system will alert the department whenever it finds transactions or entities that seem suspicious or fraudulent.
Officials believe this AI-based system will help the government take stronger action against ITC scams. The model will not only detect fraud by businesses but will also flag irregularities involving government officials, as some employees have been found involved in such scams. Once fully ready, the government plans to use this AI system more actively to prevent financial losses.
