Artificial Intelligence in GST Administration for Sustainable and Transparent Tax Systems in India

The Goods and Services Tax (GST) represents one of the most significant tax reforms in India, aiming to simplify indirect taxation and improve transparency and compliance. However, small businesses continue to face challenges related to compliance complexity, return filing, and system efficiency. At the same time, rapid digital transformation, and the emergence of Artificial Intelligence (AI) are reshaping public finance and governance systems worldwide. This study examines the role of Artificial Intelligence in strengthening GST administration while promoting transparency, efficiency, and sustainability. The research is based on primary data collected through a structured survey of 40 GST-registered small businesses, supported by secondary sources and practical internship experience in GST compliance. The findings reveal moderate awareness of GST processes, strong dependence on Chartered Accountants, increasing adoption of digital tools, and persistent compliance challenges. The study highlights that AI-driven automation, intelligent reconciliation, and digital tax systems can reduce compliance burden, improve accuracy, minimize fraud, and promote environmentally sustainable, paperless tax administration. The paper concludes that integrating Artificial Intelligence into GST systems can enhance transparency, efficiency, and sustainability, contributing to smarter and more responsible economic governance