India's GST system embraces AI as taxpayer base reaches 1.65 crore

India's Finance Ministry says artificial intelligence, machine learning and data analytics are now integral to GST administration, helping officials spot tax evasion and easing compliance for honest businesses. The technology is applied to registration, scrutiny and risk‑based enforcement. Since the GST regime began in 2017, the number of registered taxpayers has risen from 66.5 lakh to 1.65 crore as of May 2026, and collections have grown from about ₹7.4 lakh crore in 2017‑18 to ₹22.27 lakh crore in 2025‑26, with ₹4.37 lakh crore collected in the first two months of the current fiscal year.

A Deloitte survey of Indian firms shows strong industry support for an AI‑driven GSTN 2.0 platform. About 89 % of respondents want AI‑led data processing, automated reconciliations and pre‑filled returns, while 53 % seek unified dashboards and better portal performance. Companies also call for clearer tax interpretation, faster refunds and more consistent audits, indicating that technology and policy reforms together are expected to further streamline GST compliance.