The Government has taken multiple proactive steps to detect and prevent fraudulent GST registrations obtained using forged or misused PAN and Aadhaar credentials, the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, informed the Lok Sabha on December 15, 2025 in a written reply.
Providing details, the Minister stated that during the last two financial years and the current year so far, a significant number of fake GST registrations have been identified, leading to detection of substantial tax evasion.
Detection of Fraudulent Registrations and Tax Evasion
During 2023-24, a total of 5,699 fraudulent GST registrations were identified, involving an estimated tax evasion of ₹15,085 crore. In 2024-25, 3,977 such fake registrations were detected with estimated evasion amounting to ₹13,109 crore. In the current financial year 2025-26 (up to October 25, 2025), 489 fraudulent registrations have already been identified, involving tax evasion of about ₹3,013 crore.
Nationwide Drives and Verification Measures
The Government has conducted two special all-India drives—from 16 May to 14 August 2023 and from 16 August to 30 October 2024—jointly by Central and State tax authorities. These drives involved physical verification of business premises to identify non-existent or fake GST registrations. As a result, several GSTINs were suspended or cancelled.
To further strengthen the registration process, the Government has implemented biometric-based Aadhaar authentication across the country, supported by data analytics and risk-based parameters. Every GST registration application is now assigned a system-generated risk rating, enabling tax officers to carry out focused verification.
Technology-Driven Safeguards Introduced
Additional safeguards include geo-tagging of business premises, mandatory submission of bank account details linked with PAN and Aadhaar, and system-based suspension of registrations in cases of non-filing of returns or failure to furnish valid bank details within the prescribed time.
The authenticity of address documents submitted during registration is also being cross-verified using publicly available databases such as land records, electricity distribution companies, municipalities, and other local authorities.
Further, the Directorate General of Analytics and Risk Management (DGARM) is actively identifying anomalies in digital data submitted during GST registration, particularly in cases of suspected misuse of individual PAN and Aadhaar credentials. Such suspicious GSTINs are shared with field formations for necessary action.
Enforcement Actions Taken
The Minister informed that enforcement actions have also been initiated against those involved in such fraudulent activities. During 2023-24, 67 persons were arrested and 53 prosecutions were launched. In 2024-25, 50 arrests and 33 prosecutions took place. In the current year 2025-26 (up to October 2025), 16 persons have been arrested and 8 prosecutions have been launched.
The Government reiterated its commitment to safeguarding the GST ecosystem through robust verification, advanced analytics, and strict enforcement to prevent misuse of personal credentials and curb fake billing activities.
The Reply can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/Fraudulent-GST-Registrations-using-Forged-PAN-and-Aadhaar-Credentials.pdf
