How to Report a Fake GSTIN Number?

There have been reports of fake GST number registrations in recent months. This is found to be performed by obtaining a GST registration using another person’s identification. Through such a GST Registration, the impostor conducts illegal business and acquires GST through made-up transactions.

Authorities frequently pursue the person whose documents were used to obtain GST Registration when they take action against such schemes, allowing the primary offender to escape. To solve this ongoing problem, the Goods and Services Network has added functionality to check PAN usage. The new technology supports officials in investigating and cancelling such  GST registrations  and detecting and preventing fraud.

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What is GSTIN?

The GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit identification number assigned to businesses registered under GST in India. It allows businesses to collect GST from customers and claim tax credits on their purchases. The GSTIN is essential for legal compliance and simplifies tax administration, making it easier for the government to track and regulate business activities. This number is linked to each business’s PAN (Permanent Account Number) and includes state-specific codes, ensuring that tax details are tracked accurately across different regions.

Why is it necessary to verify the GST Number?

Verifying a GST Number ensures that a business is registered under GST and compliant with tax regulations. It helps avoid fraudulent transactions, as it confirms the legitimacy of a business. Unverified GSTINs may lead to risks like dealing with fake invoices, losing input tax credits, and facing legal penalties. By verifying GST numbers, businesses safeguard themselves against financial losses, improve trust with customers, and maintain transparency in their tax practices. Many online tools and government portals make it simple to check and confirm a GSTIN’s authenticity.

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GST Identification Number Format

The GSTIN follows a structured 15-digit format. The first two digits represent the state code, indicating the state where the business is registered. The next ten digits are the business’s PAN number, linking the GSTIN to the owner’s tax identity. The 13th digit indicates the number of registrations the entity has in a particular state. The 14th digit is typically a default character, while the final digit is a check code for error detection. This format ensures each GSTIN is unique and traceable, simplifying identification and verification.

What is a Fake GSTIN and How Is It Misused

A fake GSTIN is any GST number that is not valid or is being used without proper authorisation. In simple terms, it can mean:

  • A number that does not follow the correct format or does not exist in the GST system
  • A genuine GSTIN that belongs to some other person but is used by fraudsters without permission
  • A registration taken with stolen documents where the real owner of the PAN has no knowledge about the GST registration

Fraudsters use fake GSTINs for different kinds of tax abuse and financial crimes. Some common ways are:

  • Issuing fake invoices to pass on input tax credit where no real supply of goods or services happens
  • Hiding unreported sales and moving funds through layers of bogus firms
  • Showing themselves as registered businesses to win trust from customers and then disappearing without paying tax
  • Misusing another person’s PAN and identity so that notices and recovery action go to the wrong person

Because of these risks, taxpayers should treat every new GSTIN with care, verify it on the portal and keep a record of checks done during vendor onboarding.

How to Verify a GSTIN Number?

Verifying a GSTIN (Goods and Services Tax Identification Number) is essential to ensure that you’re dealing with a legitimate and compliant business entity. You can verify any GSTIN online using these simple steps:

  • Visit the Official GST Portal: Go to www.gst.gov.in .
  • Navigate to ‘Search Taxpayer’: On the homepage, under the “Search” tab, click on Search by GSTIN/UIN.
  • Enter the GSTIN: Type the 15-digit GSTIN you want to verify.
  • Solve the Captcha and click on Search.

If valid, the portal will show:

  • Legal name and trade name of the business
  • GST registration status (Active/Inactive)
  • Nature of business (Regular, Composition, etc.)
  • Type of taxpayer and place of business

This tool helps confirm whether a supplier or customer is genuinely registered under GST.

Common Red Flags That Indicate a Fake GSTIN

Identifying a fake GSTIN is critical to avoid non-compliance or fraud. Watch out for these warning signs:

  • Incorrect Format: A valid GSTIN is always 15 characters long (State Code + PAN + Entity Code + Z + Check Code). Any deviation in length or pattern is suspicious.
  • Mismatch with PAN or State Code: The embedded PAN should match the business owner’s PAN, and the first two digits must reflect the correct state code.
  • Inactive GSTIN on GST portal: If the portal shows the GSTIN as inactive or cancelled, it should not be used.
  • No E-Way Bills or GST returns: A supplier unable to generate e-Way Bills or show proper return filings might be using a fake or invalid GSTIN.
  • Incorrect name or address: If the name and address shown on invoices don’t match what appears during GST verification, it’s a red flag.

Always verify a new vendor’s GSTIN before entering any transaction.

How to Report a Fake GSTIN?

The GSTN now has a feature that enables you to check the number of registrations associated with a taxpayer’s PAN. If you discover unauthorised registrations that the taxpayer has not acknowledged, you may immediately file a GSTN complaint. The steps for filing a complaint are listed below:

  1. Go to the GST portal, select the taxpayer search option, and then select the PAN search option to get started.
  2. After entering your PAN credentials, a list of all your registrations will appear. A list of GSTINs, both active and inactive, together with their registration status, will be displayed on the page.
  3. On the right side of the page, there is a list of  GSTINs . Verify your ownership of each one and look for any erroneous registrations on the list that you might not have taken. Such registrations are false; thus, you must take action to stop them before they can be used to conduct fraudulent transactions;
  4. Select the Check box next to Report, then click the Report button.
  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; this prevents GSTINs from being reported that have not been correctly transitioned from old law to GST.
  6. In addition to basic details like their residence and date of birth, the complaint must supply an email address and a mobile number for verification. If a complainant’s GSTIN is registered under a category other than the proprietor, they must give extra personal information.
  7. To complete the verification, provide the OTP you received on your registered mobile number and mail ID;
  8. After verification, you must complete e-KYC using your Aadhaar and provide GSTN with permission to authenticate you with UIDAI. This permission is declared to include your name and Aadhaar number. GSTN would use the identification information to report fictitious GST registrations obtained through the PAN; otherwise, it will be kept confidential. It will be sent to the Central Identities Data Repository to submit a report.
  9. If you submit your Aadhaar number, you will be sent an OTP. If you enter the OTP, the second authentication process will be completed. Then simply click OK to finish.

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Information and Documents Required While Reporting a Fake GSTIN

When you report a fake or unauthorised GSTIN, authorities can act faster if your complaint is complete and clear. It helps to keep the following details and documents ready before you raise a complaint:

  • Your basic details such as full name, mobile number and email address
  • Your PAN and any GSTIN that genuinely belongs to you if the misuse relates to your documents
  • The suspected GSTIN or details of the registration you believe is fake or unauthorised
  • Copies of invoices or bills where the fake GSTIN appears
  • Any messages, emails or notices received from the GST portal or department in connection with this GSTIN
  • A brief note in simple language describing how you found the fake GSTIN and why you believe it is not genuine
  • Proof of identity such as PAN card or Aadhaar and proof of business registration if you are a registered taxpayer

In some cases, the officer may also ask for an affidavit stating that you have not authorised the registration or that you have no connection with the business using the GSTIN.

Having these papers ready makes it easier for officers to confirm your identity, understand the case and move quickly to suspend or cancel the suspicious registration.

What Happens After Filing a Complaint?

The appropriate authorities will access the complaints once they are submitted on their dashboard on the “Application for Reporting Fake GSTINs” page for further action.

The competent jurisdictional authority where the registration is alleged to have been obtained fraudulently will receive the complaint after it has been lodged and take appropriate action.

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What Should You Do If You Receive an Invoice With a Fake GSTIN

Sometimes you may discover a fake or suspicious GSTIN only after you receive an invoice. In that situation, you should act early so that your input tax credit and compliance remain safe.

A simple approach is:

  • First, verify the GSTIN on the official GST portal using the search tool
  • If the portal shows that the GSTIN is invalid, cancelled or does not match the name on the invoice, treat the invoice as risky
  • Do not claim input tax credit on such an invoice in your GST returns
  • Contact the supplier immediately and ask for a correct invoice with a valid GSTIN, or ask for written clarification
  • If the supplier refuses or is unable to provide a valid GSTIN, stop further business with that party

If you strongly believe that the GSTIN is fake or misused:

  • Collect and keep copies of the invoices, payment proofs and communication with the supplier
  • Report the suspicious GSTIN through the GST portal complaint facility or the official helpdesk
  • You can also approach your jurisdictional GST officer with a written complaint and supporting documents

After that, discuss the situation with your tax adviser or chartered accountant. They can help you:

  • Reverse any wrongly claimed input tax credit if needed
  • Correct your GST returns
  • Prepare for any future query from the department about those transactions

By reacting early and keeping proper records, you protect your business from disputes and show that you acted in good faith when you discovered the fake GSTIN.

Legal Consequences of Using or Accepting a Fake GSTIN

Using or accepting a fake GSTIN—knowingly or unknowingly—can result in serious legal penalties under GST law:

  • Penalty for Fraudulent Claim of ITC: Availing Input Tax Credit based on invoices from fake GSTINs can lead to a 100% penalty and reversal of credit.
  • Prosecution and Jail: Fraud involving fake GSTINs or fake invoices above ₹5 crore can attract imprisonment up to 5 years.
  • Cancellation of GST Registration: Repeated transactions with bogus suppliers may result in the suspension or cancellation of your own GSTIN.
  • Loss of Business Reputation: If caught in a fake GSTIN network, your business may be blacklisted, affecting your credibility.

To avoid legal complications, make GSTIN verification a routine part of your vendor onboarding and invoicing process.

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How can you Prevent Misuse of PAN?

Your organisation could suffer financial losses if your PAN is misused. We’ve compiled a set of advice to help you avoid PAN misuse to prevent this:

  1. Never reveal your PAN Card to anyone besides a reputable and reliable CA.
  2. Share your PAN card details only when necessary and never while conducting regular transactions.
  3. Never use free online tools to store sensitive papers or information.
  4. Never share such private details online.
  5. When submitting documents, remember to sign them and date them. Record the places you’ve delivered physical copies of your PAN card.

Also Know More About:  GSTIN Search

Hitesh Aggarwal
Hitesh Aggarwal
Chartered Accountant
MRN No.: 529770
City: Delhi

As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.

Frequently Asked Questions

  • What are the common signs of a fake GSTIN?
    Fake GSTINs may have incorrect formats, inactive statuses on the GST portal, or mismatch with the business name. Verifying online can confirm authenticity.
  • How can you verify a GSTIN before making a transaction?
    To verify a GSTIN, visit the official GST portal, enter the GSTIN, and confirm the business details match those provided by the vendor.
  • Are there tools available to track suspicious GST transactions?
    Yes, government portals and GST-compliant software often have tools to track and flag unusual transactions, helping detect fraud.
  • How to report fake GSTIN?
    To report a fake GSTIN, contact the GST department through their helpline, email, or local GST office. Provide necessary evidence for quicker action.
  • How to identify a fake GST invoice?
    Check for errors in GSTIN format, incorrect rates, or discrepancies in vendor details. Verify the vendor's GSTIN on the official GST portal for added assurance.
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