How to Report Fake GSTIN?

In the previous few months, there have been reports of bogus GST registrations. This is accomplished by acquiring GST registration using the documentation of another individual. Through such GST Registration, the impersonator engages in illicit transactions and obtains GST through fictitious transactions. When authorities take action against such operations, they frequently pursue the person whose documents were used to get GST Registration, allowing the principal perpetrator to flee. The Goods and Services Network has implemented a new feature called functionality to check PAN usage to address this recurrent issue. The new technology detects and prevents fraud, as well as assists officials in the investigation and revocation of such GST registrations.

Reporting a Fake GSTIN

GSTN now includes a tool that allows you to look for the number of registrations under a taxpayer’s PAN and, if you find any unknown registrations that have not been accepted by that individual, you can immediately file a complaint with GSTN. The process to make a complaint has been provided below:

1. To begin, go to the GST portal and click on the search taxpayer option, then search by PAN.
2. Insert the PAN credentials then all registrations under the PAN will be displayed. The page will show a list of GSTINs, both active and inactive, as well as their registration status.
3. The GSTINs are listed on the right side of the page. Check to see whether they all belong to you or if there are any false registrations on the list that you may not have taken. 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;
4. To report, choose the check box under Report and click on the Report button. Those GSTINs that have not been migrated properly from old law to GST cannot be reported;
5. When you click Report, a pop-up will appear, with the legal name according to PAN auto-populated in the case of individual PANs.
6. The complainant must provide an email address and a mobile number for validation, as well as other information such as their date of birth and address. Complainants must provide additional personal information if their GSTIN is registered under a category other than the proprietor.
7. Provide the OTP obtained on your mail ID and registered mobile number to complete verification;
8. 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 the Aadhaar Number and name for authentication with UIDAI. The identity details will be used by GSTN to file a report against fake GST registrations obtained through the PAN, and such information will not be shared unless it is required. To file a report, it will be transmitted to the Central Identities Data Repository.
9. You will receive an OTP if you enter your Aadhaar number, and if you provide the OTP, the second step of authentication will be accomplished. You can then just click OK, and you are done.

What happens next when a complaint is filed?

When the complaints are filed, they will be available to the appropriate authorities on their dashboard under the “Application for Reporting Fake GSTINs” page for further action.

Once the complaint has been filed, it will be forwarded to the appropriate jurisdictional authority where the registration is claimed to have been obtained fraudulently for further action.

How can you prevent PAN misuse?

Misuse of your PAN can result in financial damages for your company. To avoid this, we’ve put together a list of tips that can help you avoid PAN misuse:

1. Never disclose your PAN Card to anyone other than a renowned and trustworthy CA.
2. When making a routine transaction or when it is not required, do not share your PAN card information.
3. Never put confidential documents or information on free internet tools.
4. Never post such personal information on social media.
5. When submitting documents, include the date with your signature. Keep track of the locations where you’ve handed in physical copies of your PAN card.

The Bottom Line

The ability to report false GST registrations is a positive step toward ensuring that fake registrations are dealt with. You can now check for misuses, control frauds, and take immediate action thanks to the additional capabilities. It’s a good idea to check PAN frequently to see if it’s being used for illegal purposes.