The Central government has announced a proposal to institute a faceless assessment mechanism for around two lakh GST payers registered within central GST jurisdiction who run operations across multiple states. Finance Minister Nirmala Sitharaman stated that the new framework is scheduled for launch in FY28. This administrative move was formulated directly by the Centre rather than as a decision emerging from a GST Council meeting.
Presently, about 69.5 lakh taxpayers operate exclusively within central jurisdiction. Nearly two lakh of these entities fall under multiple CGST jurisdictions, located either inside a single state or distributed across several states. To manage this group, authorities approved a concept note establishing a centralised single-window administration covering scrutiny of returns, taxpayer audits, legal adjudications, appellate proceedings, routine taxpayer services, and official grievance redressal.
The primary objective of the incoming system is to remove direct physical interaction between assessees and department officials wherever technology permits. According to official disclosures, the setup will rely on a national digital platform to issue notices, conduct hearings, and issue administrative orders. This infrastructure is intended to enable team-based evaluations across dynamic jurisdictions while streamlining official resources rather than routing matters through regional field offices.
The distribution of taxpayers between central and state authorities follows an existing proportional allocation decided by the GST Council. Taxpayers with an annual turnover exceeding ₹1.5 crore are divided equally between the Centre and the relevant State in a 50:50 ratio. For enterprises reporting an annual turnover under ₹1.5 crore, the allocation stands at 10:90, giving State authorities primary jurisdiction over the vast majority of smaller accounts.
Commentary cited in the release noted that the rollout of faceless assessment in income tax faced varied operational challenges. Observers pointed to persistent difficulties with standardized template notices, insufficient administrative evaluation of taxpayer submissions, and subsequent court interventions that overturned contested orders. Because indirect taxation involves distinct complexities, practitioners observed that incorporating robust procedural safeguards prior to rollout will be necessary to prevent increases in tax litigation.
Regarding upcoming steps, Central Board of Indirect Taxes and Customs Chairman Vivek Chaturvedi stated that the complete draft framework will be issued for public consultation before the end of this year. This stakeholder review period will provide multi-state enterprises and tax practitioners an opportunity to examine the proposed operational procedures before the planned deployment takes effect during FY28.
Key numbers
- Affected multi-jurisdiction taxpayers: around two lakh
- Launch fiscal year: FY28
- Total exclusive CGST taxpayers: about 69.5 lakh
- Turnover threshold for 50:50 distribution: ₹1.5 crore
- Sub-threshold Centre-State distribution ratio: 10:90
What a board might note
- Whether the company falls into the group of nearly two lakh businesses operating under multiple CGST jurisdictions that will transition to the unified portal in FY28.
- How finance teams plan to review and respond to the upcoming draft framework scheduled by the Central Board of Indirect Taxes and Customs for public consultation by the end of this year.
- Whether corporate tax reporting setups above the ₹1.5 crore turnover threshold are prepared for team-based scrutiny across dynamic jurisdictions rather than dealings with local field offices.
Source: The Hindu BusinessLine Economy, 8 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
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