India's Goods and Services Tax (GST), managed by the Goods and Services Tax Network (GSTN), represents a significant technology-driven tax reform. While digitalization has increased transparency and compliance, it has also introduced new risks to data security, privacy, and governance. This paper contends that the main challenge for India's digital GST system is to identify and address its structural, technological, and regulatory weaknesses.
Achieving long-term success will require reducing threats like cyberattacks, data breaches, unauthorized access, identity fraud, and system disruptions through targeted reforms in governance and technology. This study argues that India's GST data governance framework urgently needs to address key issues such as data ownership, data sharing between agencies, accountability, and compliance with new data protection standards.
It examines whether current cybersecurity tools, such as encryption, audits, and disaster recovery, are enough to protect taxpayer data. The study also highlights the privacy and ethical challenges associated with using AI-driven analytics in the tax system. It concludes by recommending a new, security-focused governance model to protect taxpayer interests and help achieve the goals of GST, in line with the Viksit Bharat 2047 vision.