Real Cases of Identity Theft

All across India, street vendors, daily labourers, and NRIs are getting GST notices asking them to pay huge amounts of money they never owed.

• In Telangana, a worker was shocked to get a Rs. 22.86 lakh GST notice. Someone had used his PAN card to register a fake business without his knowledge.
• An NRI living in Dubai received a Rs. 2.84 crore GST notice for a company he had never done business with. Criminals had made a fake PAN card with his details.

These aren’t rare cases. The government has found thousands of fake GST registrations made using stolen PAN and Aadhaar information. Criminals exploit system weaknesses to create shell companies, claim fake tax credits, and move illegal money. In 2024–25 alone, officials found more than 25,000 fake companies involved in frauds worth over Rs. 1.95 lakh crore.

How Criminals Steal Identities

Investigations show that fraudsters get PAN and Aadhaar information through:

• Phishing scams
• Data breaches
• Poor document checking
• Offering fake jobs to young people who then submit their personal details

They use these stolen identities to register fake businesses and create false invoices. Sometimes, even small differences between names on PAN and Aadhaar didn’t stop GST registration, showing gaps in the system.

What the Government Has Done

The government has added some safety measures, like

• Multiple verification steps for the GST portal login
• Stricter document requirements
• Physical verification for “risky” applicants
• Mandatory Aadhaar authentication

But these steps haven’t completely stopped identity fraud. Regular citizens are still at risk, especially those who don’t understand digital systems or don’t check their online accounts regularly.

How This Affects Victims

People whose identities are stolen suffer serious problems:

• Financial losses from legal fees while trying to prove their innocence
• Frozen bank accounts and assets
• Damage to their reputation can affect jobs and future opportunities
• Mental stress, anxiety, and frustration
• Complicated paperwork with police and tax officials that many find overwhelming

Is the Government Doing Enough?

Critics say the government is mostly reacting to problems after they happen instead of preventing them. While some scammers have been arrested and some fake tax credits have been stopped, there aren’t enough system-wide changes to prevent identity theft. There’s little help for victims who often don’t have the resources or knowledge to protect themselves.

Experts warn that unless the government makes stronger identity checks, regularly verifies registrations, and educates the public, innocent people will continue to be at risk.

Biometric Authentication: A Possible Solution

The government has introduced biometric Aadhaar authentication for GST registration. This could help reduce identity theft by:

• Requiring physical presence and fingerprint verification
• Making it harder to create ghost companies and fake GST registrations
• Discouraging scammers from stealing identities

The GST Network uses data analysis and risk factors to identify suspicious applications, requiring biometric verification for risky cases. This system better protects innocent people since unauthorized persons can’t easily register a business using someone else’s PAN or Aadhaar.

How to Protect Yourself

• Regularly check the GST portal to make sure no one has registered a business using your PAN
• Use the GSTIN search feature to verify that no business is wrongly linked to your details
• Don’t share scanned copies of your PAN or Aadhaar with unknown people
• Lock your Aadhaar if you’re not using it regularly
• Check your credit reports for any unauthorised activity

Recent Cases of PAN Misuse

Several shocking cases have come to light where ordinary workers received huge tax notices:

• A juice seller from Aligarh, Uttar Pradesh, named Mohammad Raees, was asked to pay Rs. 27.79 crore in income tax.
• An egg seller from Madhya Pradesh named Prince Suman got a GST notice for Rs. 26 crore, supposedly for transactions worth Rs. 50 crore.
• A potter from Rajasthan named Vishnu Kumar Prajapat received an income tax notice for Rs. 10.61 crore.
• A sanitation worker at SBI from Aligarh, who earns only Rs. 15,000 monthly, was given an income tax notice of Rs. 33.88 crore.
• A daily wage labourer from Uttar Pradesh named Sabra received an income tax notice for Rs. 4.88 crore, which she knows nothing about. Another daily wage worker from Telangana also received GST notices.