Delhi High Court mandates biometric Aadhaar authentication for GST registrations

The Delhi High Court has directed authorities nationwide to mandate biometric-based Aadhaar authentication for all Goods and Services Tax (GST) registrations. This interim order aims to prevent the misuse of stolen or frozen PAN and Aadhaar details, which has been used to create fraudulent registrations and cause significant revenue loss to the government.

The ruling follows petitions, including one from an individual named Neha, who alleged that fraudulent GST registrations were obtained using her personal details to swindle funds from her bank account. The court expressed concern over the “rampant” nature of such fraud, noting that it creates massive tax liabilities for innocent citizens.

While the court has mandated the biometric requirement, it has granted authorities the liberty to report any practical difficulties in implementing the measure. The bench also directed officials to examine suggestions for curbing the misuse of identity particulars to prevent further financial crimes.