Delhi High Court Orders Nationwide Biometric Aadhaar Verification For Fresh GST Registrations

New Delhi, September 10, 2026: The Delhi High Court has directed Goods and Services Tax (GST) authorities across the country to ensure that no fresh GST registration is granted unless the applicant undergoes biometric-based Aadhaar authentication.

A division bench of Justices Anil Khetarpal and Shail Jain passed the order amid concerns over fraudulent GST registrations obtained by misusing Permanent Account Number (PAN) and Aadhaar details of unsuspecting individuals. The direction is significant as it seeks to close a loophole that has allegedly enabled large-scale tax evasion using stolen identities, Live Law reports.

Thousands Of Fake Registrations Detected

The court referred to figures furnished by the Union Minister of State for Finance in the Rajya Sabha. According to the data, 2,800 fraudulent GST registrations using stolen or frozen PAN and Aadhaar details were detected in 2023-24, involving tax evasion of Rs 15,085 crore. In 2024-25, authorities detected 1,654 such registrations involving tax evasion of Rs 13,109 crore.

The court noted that the Government had stated that biometric Aadhaar authentication was mandatory for GST registration. However, it observed that more than a year later, the measure had apparently not been implemented fully.

Court Questions Delay In Implementation

“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,” the court remarked.

The court also recorded that counsel appearing for the authorities had been unable to identify any practical difficulty in making biometric Aadhaar authentication compulsory for GST registration. The observation puts the focus on the gap between the Government’s stated policy and its implementation on the ground.

No Registration Without Biometric Authentication

The court consequently directed authorities “across the country not to allow any GST Registration without biometric based AADHAR authentication henceforth”.

While issuing the direction, the bench permitted the authorities to bring to its notice any practical difficulties that may arise while implementing the requirement.

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Court Seeks More Safeguards Against Fraud

The court also asked the authorities to consider a set of measures suggested by Senior Advocate Tarun Gulati to prevent the misuse of PAN and Aadhaar details for securing fraudulent GST registrations.

The matter will next be heard on September 22, 2026.

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