GST registration will now require biometric Aadhaar authentication after the Delhi High Court directed authorities across the country not to allow any new registration without completing the verification.
The interim order aims to address the misuse of stolen or frozen PAN and Aadhaar details for fraudulent GST registrations.
GST Registration Rule Changes Nationwide
The Delhi High Court issued the direction while hearing cases involving fraudulent GST registrations created using the identity details of people who said they had no connection with the businesses or transactions associated with those registrations.
The court noted that biometric Aadhaar authentication had been described as mandatory by the government, but was being conducted only when the GST system identified an application as risky through various parameters and data analytics.
The bench of Justices Anil Kshetarpal and Shail Jain directed authorities across India not to permit GST registration without biometric-based Aadhaar authentication. Authorities can place any practical difficulties in implementing the direction before the court.
Why Has The Court Ordered Biometric Verification?
The court’s intervention comes amid concerns that stolen or frozen PAN and Aadhaar details are being used to create fake GST registrations.
Such registrations can leave innocent individuals facing tax-related liabilities and other consequences for businesses they never operated.
The court referred to government data showing 2,800 fraudulent GST registrations involving stolen or forged PAN and Aadhaar details were detected in 2023-24, with tax evasion of ₹15,085 crore.
In 2024-25, another 1,654 such registrations involving ₹13,109 crore in tax evasion were detected.
What Will Change For GST Applicants?
Under the interim direction, biometric Aadhaar authentication will become a verification requirement for GST registration rather than being limited to applications identified as risky by the system.
The court has also asked authorities to examine additional safeguards suggested by Senior Advocate Tarun Gulati.
These include stronger identity verification measures aimed at preventing misuse of PAN and Aadhaar information during the registration process.
The matter is scheduled for further consideration on September 22, 2026.
The final position could depend on the court’s further proceedings and any practical difficulties reported by the authorities.
