ClearTax report: India's tax systems adopt AI but firms lag
A new ClearTax report shows that while India's tax systems are getting smarter with AI, most companies aren't keeping up.
Based on insights from over 100 CFOs and analysis of enterprise tax transactions across sectors including manufacturing and retail, only one-third can actually see their tax risks in real time, which means many businesses spot problems only after the taxman comes knocking.
AI improves GST matching and processing
Regulators now use AI to track GST filings, TDS returns, and e-invoices around the clock.
The good news? AI tools have made things way faster: matching input credits is nearly flawless now (98% vs. 80% before), GST returns take just three days instead of 18, and automated tools have cut down on demand notices by up to 60%.
But companies using old-school systems still face more mismatches, so there's a clear push for everyone to modernize.