Fake GST crackdown: 489 forged PAN–Aadhaar registrations detected till Oct; Rs 3,000 crore evasion flagged

A fresh sweep against tax fraud has uncovered 489 bogus GST registrations in just six months, with forged PAN and Aadhaar details used to evade over Rs 3,000 crore in taxes, the government told Parliament on Monday, signalling a sharper focus on data-led enforcement, according to PTI.The latest detections, covering April to October, come even as authorities grapple with a much larger legacy problem. In the ongoing 2024–25 fiscal so far, as many as 3,977 fake GST registrations have already been identified, involving tax evasion of Rs 13,109 crore. The previous financial year, 2023–24, saw an even bigger spike, with 5,699 fraudulent registrations linked to evasion of Rs 15,085 crore.Replying to a question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the Directorate General of Analytics and Risk Management (DGARM) has intensified scrutiny of digital data submitted during GST registration, particularly by proprietorship firms.According to Chaudhary, the exercise involves scanning registration data for anomalies and red flags, especially cases where individual credentials such as PAN appear to be misused. “GST registrations are identified and shortlisted wherein misuse of individual credentials like PAN is suspected. These suspect GSTINs are shared with field formations for appropriate verification,” he said.Beyond forged identities, the government is also targeting entities created solely to facilitate fake invoicing and the wrongful flow of input tax credit (ITC) through the supply chain.

DGARM, Chaudhary said, is focusing on identifying such high-risk taxpayers who exist only on paper but are used to pass on ineligible ITC.Enforcement action has followed these analytics-led checks. Between April and October this year, GST officers arrested 16 persons in connection with fake registrations. In comparison, 50 arrests were made in FY25 so far and 67 arrests in FY24, reflecting sustained pressure on organised tax fraud networks.The Centre and states have also carried out coordinated, nationwide drives to weed out non-existent firms. Two such special operations were launched between May and August 2023, and again from August to October 2024, involving both Central and state tax administrations.“The drive against non-existent/fake registrations involved physical verification of the business premises of the taxpayers by duly constituted teams of tax officials. During this special drive non-existent GSTINs were identified and suspended/cancelled,” Chaudhary told the House.