The Delhi High Court has given the GST authorities and Delhi Police a final opportunity to find an effective way to prevent fraudulent GST registrations allegedly created using citizens’ PAN and Aadhaar details.
A Bench of Justice Anil Kshetarpal and Justice Shail Jain expressed strong concern over the continuing misuse of identity documents, observing that the problem has persisted for years despite enforcement action.
Background of the Case
The petition was filed by Neha, who alleged that two GST registrations had been obtained using her PAN and Aadhaar details without her knowledge or consent. She claimed that the misuse was linked to an alleged attempt to recover more than ₹4.46 crore from her savings account with Punjab National Bank.
According to the petition, she approached the concerned GST authorities in March 2026, but alleged that no effective response followed. She told the Court that she was a housewife and had no connection with the business transactions in question.
Court’s Observations
During the hearing, the government counsel submitted that authorities had already taken action, including arrests and filing of chargesheets against persons allegedly involved in such activities.
The Court, however, was not satisfied that the existing measures had effectively addressed the wider problem.
“A period of nearly nine years have elapsed, however, the respondents have failed to curb these malpractices which not only affect the citizens of the country who have nothing to do with GST registration, but also results in huge loss to the government.”
Justice Kshetarpal further remarked:
“I will stop GST registration if this continues. GST has created more problems than solving.”
The Bench also questioned why such misuse does not appear to affect officials and their families in the same manner.
Court’s Decision
The Court granted the Commissioner of CGST, Commissioner of DGST and Commissioner of Delhi Police a last opportunity to work out an effective solution.
“Last opportunity is granted to the respondents to find effective solution to the problem failing which the court will be left with no choice but to pass effective orders.”
The matter has been listed for further hearing on September 8, 2026.
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