How to Report Fake GST Registration? Misuse of PAN

Ashish M. Shaji

10 Sep, 2022

Instances of fake GST registration have been reported in the last few months. The modus operandi for this involves using documents of another person and obtaining GST registration. The impersonator through such GST Registration carries out illegal transactions and collects GST through fake transactions. When the authorities undertake action against such activities often they end up proceeding against the person whose documents were used to obtain GST Registration and the main culprit escapes. To deal with this persistent issue, the Goods and Services Network has introduced a new feature called functionality to check misuse of PAN. The new functionality checks the misuses, control the instances of frauds and help officers in inquiry and cancellation of such GST registration. In this article we will discuss this concept in detail.

Process to report fake GST Registration

GSTN^[1] now provides with a feature where you can search for the number of registration under a taxpayers PAN and if they find any unknown registration which has not been taken by such person then they may make a complaint to GSTN instantly. The process to make a complaint has been provided below:

• Firstly you need to visit GST portal and under the search taxpayer tab click on search by PAN;
• Insert the PAN credentials then all registrations under the PAN will be displayed. The page will display the list of GSTINs, whether active or inactive and also the state of registration;
• On the right side of the page all GSTINs are displayed. Check whether all of them belong to you or if there are any fake registrations which you may not have taken but is appearing in the list. such registrations are fake registrations hence you need to take action against it or else such registrations can be used to carry out fake transactions;
• In order to report, tick the check box under Report and clock on report. Those GSTIN that has not been migrated properly from old law to GST cannot be reported;
• On clicking Report, a pop-up will be displayed where in the case of individual PAN legal name according to PAN will be auto populated;
• While registering complaint, the complainant should provide the email address and mobile number for validation and other details such as the date of birth and address etc. In case of GSTIN registered under the category apart from proprietor, complainants need to provide other personal details.  
• Provide the OTP obtained on your mail ID and registered mobile number to complete verification;
• When the verification is done, you need to undertake e-KYC through Aadhaar verification and provide consent for authentication to GSTN, where it is declared that the consent to GSTN to obtain Aadhaar Number and name for authentication with UIDAI. GSTN will use the identity details for filing report against fake GST registration obtained through the PAN and such information will not be shared unless required and will be submitted to the Central Identities Data Repository for the purpose of filing report.
• Provide the Aadhaar number and you will receive an OTP and provide the OTP and the second level of authentication will be completed.
• When it is done the aadhaar details are shown on the site. Check the details provided by you and if every detail is correctly filled in then proceed with the declaration where it is stated that the PAN number….belonging to such taxpayer and the following GST registration against this PAN have been taken incorrectly and that too without taking due consent of the appropriate authority. Proper investigation request with the competent authority is made and necessary action is called for.
• After this declaration is made, then you need to click on either accept or reject. If accept option is selected, the application is sent to the appropriate authority for investigation. The Complaint is registered however in case you don’t want to go ahead with the application then you may reject and quit the process and the complaint will not be registered.  

What happens once a complaint has been registered?

When the complaints have been registered, it will be made available to the competent authorities at their dashboard under the tab- “Application for Reporting Fake GSTIN’s tab for further necessary action”

Once the complaint is registered, it shall be sent to the concerned jurisdictional authority where the registration is claimed to be taken fraudulently, for necessary enquiry and further action.

How you can stop misuse of PAN?

Misuse of PAN can lead to losses in your business. In order to avoid this below we have mentioned some tips which can help in avoiding misuse of PAN:

• Never upload your confidential documents/information on free tools on the internet;
• Never share your PAN Card with anyone apart from a trustworthy and reputable CA;
• Avoid sharing your PAN card details for any ordinary transaction or where it is not necessary;
• Never share such confidential details on social media;
• Secure original as well as photocopies of your PAN card. Provide the date with your sign when submitting documents. Also, keep track of the places where you have submitted physical copies of your PAN card.

Conclusion

The facility to report fake GST registration is a commendable step towards ensuring action against fake registrations. The new functionality enables you to check misuses, control frauds and take action instantly. It is advisable to regularly check if your PAN is misused by someone to make illicit gains.

Read Our Article: GST Tax Evasion: Eliminating Menace of Fake GST Invoices