GST Registration Update: If you run a business or plan to start one, this news matters. The Delhi High Court has ordered that it can no longer process Goods and Services Tax (GST) registration without biometric-based Aadhaar authentication. A bench comprising Justice Anil Kshetarpal and Justice Shail Jain issued this order after hearing petitions alleging that fraudulent registrations were being created using the PAN and Aadhaar details of the petitioners.
In its order, the bench noted that a Minister had previously informed Parliament—in response to a question regarding fake GST registrations—that 2,800 cases of fraudulent GST registration were detected in 2023-2024, involving tax evasion worth ₹15,085 crore. Subsequently, the bench found 1,654 fraudulent registrations and tax evasion amounting to ₹13,109 crore in 2024-2025.
The bench observed that while the government had stated biometric verification via Aadhaar would be made mandatory for GST registration, this system has not yet been implemented. Consequently, fraudulent registrations continue to be made using misappropriated PAN and Aadhaar details.
System to be Implemented Now
The court stated that officials have failed to implement such a system. No GST registration will be processed without Aadhaar verification. The court clarified that it has instructed officials across the country not to permit any GST registration without biometric-based Aadhaar verification moving forward. The court had previously urged officials to take appropriate measures to address the resulting revenue loss and public inconvenience, expecting the matter to be treated with the utmost seriousness.
Deadline September 22
Meanwhile, the court granted officials leave to raise objections about any practical difficulties in implementing the measure and scheduled a hearing for September 22. Objections of any kind can be lodged until that time. In an earlier order, the court directed officials not to deny that fraudulent GST registrations have been obtained using the PAN and Aadhaar details of innocent citizens.
Current GST Registration System
Under current laws, Aadhaar verification is not mandatory for GST registration. Consequently, registrations are being processed using PAN cards and other documents without any verification. Once the court’s order is implemented, GST registration will only be possible using an Aadhaar number that can be verified via the mobile number linked to it.
The court further observed that nearly nine years have passed since the implementation of GST, yet officials have failed to implement this system, resulting in significant losses to the public exchequer and the general public.