Kerala Introduces Faceless GST Proceedings: Start With Audit SCNs u/s 73, 74 & 74A [Read Instruction]

The goal of introducing the faceless adjudication under GST is to guarantee a clear, unbiased, and non-discretionary adjudication procedure in which taxpayers are given an equal chance to reply to show cause letters (SCNs) free from the inconvenience of a physical interface.

In the first phase, faceless adjudication will cover SCNs issued under Sections 73, 74, 74A, and 76 of the KSGST Act, particularly those originating from the Audit vertical. The pilot rollout begins in the districts of Pathanamthitta and Idukki, starting from August 1, 2025, with SCNs issued from that date falling under the new faceless regime.

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New roles have been created:

• Faceless Routing Officers (FROs) – To manage case allocation.
• Nodal Supervisory Officer (NSO) – To supervise, guide, and monitor the system.
• Faceless Adjudicating Authorities (FAAs) – To adjudicate SCNs without disclosing their identity in notices.
• SCNs from the Audit vertical under Sections 73/74/74A must be routed to FROs based on pecuniary limits outlined in Circular No. 06/2023.
• NIAs must not mention names or designations of adjudicating authorities in SCNs.
• All SCNs and related documents must be uploaded and routed digitally.
• Registers must be maintained tracking SCNs routed to FROs and shared with the NSO when requested.
• Act as intermediaries between NIAs and FAAs.
• Responsible for routing SCNs within their assigned monetary jurisdiction.
• The Deputy Commissioner, Economic Intelligence Division shall act as the NSO for this purpose and is authorized to provide the provision of Reassignment function in the adjudication
• role available in the GSTN Back Office portal.
• Operate under dual digital roles- L3 (Circle level) and L1 (State level).
• Must ensure timely allocation of SCNs to relevant FAAs as per the faceless allocation logic.
• FAA Conduct all adjudications strictly through the State Role (L1) portal access.
• Cannot redirect cases; if ineligible due to pecuniary limits, they must inform the NSO.
• Must wait for statutory reply/payment window (30/60 days) to elapse before taking action.
• Personal hearings must be conducted only online.
• RUD (Relied Upon Documents) verification, if requested, should be facilitated at the office of the NIA.
• Post-adjudication actions such as rectifications under Section 161 must be undertaken by the same FAA who passed the Order-in-Original.

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Operational Guidelines for Officers

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In addition to above, four designated FROs have been identified for allocation:

• FRO – Joint Commissioner (JC)
• FRO – Deputy Commissioner (DC)
• FRO – Assistant Commissioner/State Tax Officer (AC/STO)
• FRO – Deputy State Tax Officer/Assistant STO (DSTO/ASTO)

Each SCN is routed to the appropriate FRO based on the tax amount involved.

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