In a recent case that underscores the growing threat of cyber fraud, a complainant has reported a serious instance of identity misuse involving the unauthorised issuance of a Goods and Services Tax (GST) number using their PAN and Aadhaar details.
According to the complaint lodged at the CEN (Central Economic Narcotics) police station (North-East) division, an unknown individual used the complainant’s PAN card and Aadhaar number to obtain a fake GST registration in the complainant’s name. The fraud came to light when the complainant received an email from the tax department regarding financial transactions linked to the GST account for the fiscal year 2025–26.
Upon verifying the information through the official Income Tax portal, the complainant discovered that these transactions did not match any of their financial activities.
This led to the realisation that their PAN credentials had been misused, prompting them to identify the issue as a case of cybercrime.
The complainant has now urged authorities to investigate the matter thoroughly, trace the person responsible for this fraudulent activity, and take appropriate legal action.
Growing cybercrime trend
This incident is not an isolated one. Cases of fake GST registrations using stolen identities have been on the rise, causing significant distress to genuine taxpayers. Fraudsters often use PAN and Aadhaar details obtained through phishing or data breaches to register fake businesses, which are then used for issuing bogus invoices or laundering money.
In the year 2024, nearly 10 cases of Adhaar misuse were reported, but the authorities have warned that this is a growing trend where the Aadhaar and PAN information is misused.
Similarly, the Directorate General of GST Intelligence (DGGI) in Bengaluru uncovered a significant GST fraud involving Rs. 3,200 crore on January 29, 2025. The investigation revealed that the accused established 15 shell companies without genuine business operations. These entities engaged in circular trading to artificially inflate turnover and fraudulently availed and passed on fake Input Tax Credit (ITC) totalling Rs. 665 crore. Notably, nine of these companies were listed on Indian stock exchanges, and the GST returns for most were filed from common IP addresses, indicating centralised control. Two individuals were arrested in connection with the case, while a third suspect remains at large.
Authorities are tightening verification processes and urging individuals to remain vigilant. Regularly monitoring one’s PAN and GST status online and promptly reporting any suspicious activity are crucial steps in safeguarding against such fraud.
