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Delhi High Court Seeks Nationwide Biometric Checks for GST Registration

Delhi High Court Seeks Nationwide Biometric Checks for GST Registration
Delhi HC asks GST Dept for nationwide biometric Aadhaar authentication for registration · thehindubusinessline.com

The Delhi High Court is concerned that some people are creating fake GST registrations.

These registrations can use stolen or frozen PAN and Aadhaar details.

The court told GST authorities across India to use biometric Aadhaar checks before approving registrations.

The order is an interim measure, meaning it applies for now.

The court said fake registrations can reduce government tax revenue and trouble innocent people.

Officials reported thousands of fraudulent registrations and large amounts of detected tax evasion.

A senior lawyer suggested extra checks, such as facial recognition and short videos showing identification documents.

The authorities may still tell the court about practical problems with using the new process.

Key facts

Court
Delhi High Court
Order
Biometric-based Aadhaar authentication required for GST registration, for the time being
2023–2024 fraud cases
2,800 fraudulent GST registrations
2023–2024 detected tax evasion
₹15,085 crore
2024–2025 fraud cases
1,654 fraudulent GST registrations
2024–2025 detected tax evasion
₹13,109 crore
Additional proposals
Facial recognition, video verification, IP and device-location records, physical verification, and real-time tax-data sharing

Quotes

Delhi High Court division bench

Justices Anil Kshetarpal and Shail Jain, who issued the interim order

“It appears that despite passage of more than one year, the statement given by the minister on the floor of the House has not been fully implemented, resulting in continuous fake GST registration obtained using stolen or frozen PAN/ Aadhaar details”
thehindubusinessline.com
“for the time being, directions are issued to authorities across the country not to allow any GST registration without biometric-based Aadhaar authentication henceforth”
thehindubusinessline.com

Sources

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