Hierarchical RAG System

Advanced Retrieval-Augmented Generation for BEPS Tax Reports Analysis

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Project Overview

This academic project implements a sophisticated Hierarchical RAG (Retrieval-Augmented Generation) system specifically designed for analyzing Base Erosion and Profit Shifting (BEPS) action reports. The system features intelligent query routing, multi-layer retrieval, and production-ready deployment options.

85-92%

Accuracy

1-10s

Query Latency

30 QPM

GPU Throughput

6 QPM

CPU Throughput

Hierarchical Architecture

Two-Layer Design

┌─────────────────────────────────────────────────────────────┐ │ Layer 1: Keyword/Summary Store │ │ ┌─────────────┐ ┌─────────────┐ ┌─────────────┐ │ │ │ Keywords │ │ Summaries │ │ Metadata │ │ │ │ - BEPS │ │ - Action 1 │ │ - Doc ID │ │ │ │ - Transfer │ │ - Action 5 │ │ - Page │ │ │ │ - Pricing │ │ - Action 13 │ │ - Section │ │ │ └─────────────┘ └─────────────┘ └─────────────┘ │ └─────────────────────────────────────────────────────────────┘ │ ▼ ┌─────────────────────────────────────────────────────────────┐ │ Layer 2: Document Store │ │ ┌─────────────────────────────────────────────────────────┐ │ │ │ Full Document Chunks (512 tokens, 50 overlap) │ │ │ │ - Complete BEPS Action Reports │ │ │ │ - Detailed explanations and examples │ │ │ │ - Regulatory text and guidelines │ │ │ └─────────────────────────────────────────────────────────┘ │ └─────────────────────────────────────────────────────────────┘

Decision-Making Agent Flow

User Query → Query Classifier → Decision Engine → Response Router ↓ [RAG] ← → [Direct] ← → [Web Search]

Technology Stack

Python 3.8+

Core language

PyTorch

ML framework

FAISS

Vector search

Docker

Containerization

FastAPI

Web framework

Sentence-Transformers

Embeddings

Models & Methods

Embedding Models

# Primary Embedding Model sentence-transformers/all-MiniLM-L6-v2 - 384-dimensional vectors - Optimized for semantic similarity - Fast inference (critical for hierarchical retrieval) - Multilingual support for international BEPS documents

Retrieval Methods

Hierarchical Retrieval

Two-layer approach: keywords → full documents

Confidence Scoring

Intelligent routing based on query confidence

Web Fallback

Internet search for latest updates

Chunk Processing

512 tokens with 50-token overlap

Deployment Options

CPU Deployment

Backend: llama.cpp with GGUF models

Container: Ubuntu 20.04 + llama.cpp

Model: Quantized 4-bit for efficiency

cd deployment/cpu ./deploy_cpu.sh # Access: http://localhost:8000

GPU Deployment

Backend: vLLM for high-throughput inference

Container: CUDA 11.8 + vLLM

Model: Full precision for accuracy

cd deployment/gpu ./deploy_gpu.sh # Access: http://localhost:8000

Quick Start Guide

Clone Repository
git clone https://github.com/mk-knight23/hierarchical-rag-beps.git cd hierarchical-rag-beps
Choose Deployment

Select CPU or GPU deployment based on your hardware

Run Deployment Script
# For CPU cd deployment/cpu && ./deploy_cpu.sh # For GPU cd deployment/gpu && ./deploy_gpu.sh
Test the API
curl -X POST http://localhost:8000/query \ -H "Content-Type: application/json" \ -d '{"query": "What are BEPS Action 13 requirements?"}'

Performance Metrics

Comparison Table

Metric CPU (llama.cpp) GPU (vLLM)
Query Latency 5-10s 1-2s
Throughput 6 QPM 30 QPM
Memory Usage 8GB RAM 8GB VRAM
Accuracy 85% 92%

Test Questions

Hierarchical RAG Evaluation

Agent Decision Evaluation