Transforming GST Administration for Efficiency and Transparency by Blockchain

Blockchain technology, with its inherent features of transparency, immutability, and decentralized consensus mechanisms, presents a compelling solution for enhancing Goods and Services Tax (GST) administration. This paper explores the potential of leveraging blockchain technology, particularly with a Proof of Authority (PoA) consensus mechanism, to revolutionize GST processes. Through smart contracts, automation can be introduced to streamline tax-related procedures, reducing manual intervention and improving operational efficiency. The PoA consensus mechanism ensures secure and efficient transaction validation, fostering trust and reliability within the GST network. Additionally, the scalability and resilience of blockchain infrastructure enable the accommodation of increasing transaction volumes and data-intensive applications, as evidenced by the exponential growth in stored data. The interaction layer facilitates seamless communication and collaboration among stakeholders, ensuring interoperability and accessibility. While businesses emerge as primary participants in transactional activity, tax authorities and validators play critical roles in ensuring compliance and maintaining network integrity. Successful implementation of blockchain technology in GST administration requires careful consideration of technical, regulatory, and organizational factors to unlock its full potential and realize the envisioned benefits. This research underscores the transformative potential of blockchain in GST administration, promising improved transparency, reduced fraud, and streamlined operations.