Blockchain technology is becoming a revolution in the area of the internet. It is considered a driving force behind the next generation of the Internet. It is an unchallengeable and decentralized database that facilitates transparent and auditable management of data over a distributed network. It has the ability to transform industries and services including tax management system. We suggest that the decentralized and programmable nature of the blockchain applications can be used to improve the tax management system to gain greater efficiency in this system. The current indirect tax management system in India is complex and requires to do some activity offline. It also has an overhead of return filing. The blockchain can potentially solve these issues. The use of the blockchain based distributed ledger and smart contracts can reduce the administrative burden for accounting services and there is no need to do anything offline, everything will be done online during the tax payment itself. Using the blockchain, all the transactions are done in real time, therefore no return filing is required. The blockchain technology has the advantage that all the transactions are transparent and tamper-proof reducing any system fraud.

Blockchain, Distributed Network, Real-time, Smart Contract, Hash Function, Goods and Services Tax

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