Indian court voids a tax officer's GST order built on fake AI cases

A probationary state tax officer in Surat, India, used an AI tool to draft a GST order against a business. The order relied on judgments that did not exist, were miscited, or did not apply. The business challenged it in the Gujarat High Court, which raised the problem on August 13, 2026. In an affidavit, the officer admitted that AI had drafted the order and supplied the citations, and apologized unconditionally. On August 20, the court set aside the proceedings and told the department to issue a fresh notice and hear the business's defense. It ordered officials to follow new departmental rules on AI use and warned that breaking them would be contempt of court.