Lack of clarity on AI usage causes confusion in Telangana’s Commercial Tax department

HYDERABAD: With AI being the buzzword in every field, its usage is increasingly gaining currency and acceptance. The state’s Commercial Tax Department (CTD) officials have been unofficially using AI in their work for drafting discrepancy reports, notices, orders, and other proceedings. They have also been using it for analysing, translating and summarising case records.

The Circular No 1/2026 issued by the department on August 18 in its bid to balance the confidentiality of taxpayer information and obligations under the Digital Personal Data Protection Act, 2023 welcomes responsible adoption of AI tools to enhance speed, consistency and quality.