The Delhi High Court has recently raised serious concerns over fake GST registrations obtained using stolen identities, warning tax professionals and consultants to exercise greater due diligence while handling client documents.

In S.K. Overseas v. Superintendent Range 20 Central GST Division ([2025] 88 TAXLOK.COM 178 (Delhi)), the Court found that the so-called proprietor of the firm denied any connection with it. This revelation exposed an alarming trend — where unscrupulous accountants and intermediaries misuse credentials of unsuspecting individuals to float bogus entities and file fraudulent petitions in court.

2. Case Background

The petitioner firm S.K. Overseas had filed a writ petition challenging the cancellation of its GST registration. Initially, the Court restored the registration, believing the affidavits and filings to be genuine. Later, during review proceedings, startling facts came to light:

The alleged proprietor, Mr Suraj, a blacksmith by profession, stated in his interrogation that he had no knowledge of any firm named S.K. Overseas.
His PAN was misused, his signature forged, and his mobile number falsified.
The rent agreement and registration documents were fabricated using his identity.

Upon inquiry, it was revealed that the case had been filed through an accountant, Mr Ashish Chaurasia of M/s AMR & Associates, who had provided login credentials and details of the so-called firm to the lawyer representing it

3. Court’s Observations

Justice Prathiba M. Singh observed that:

“Various fictitious persons, in whose names firms are registered by impersonation or stolen identity, have approached the Court. Lawyers have not even met their clients; affidavits are attested without verification.”

The Court cited its earlier ruling in S R Enterprises v. Pr. Commissioner of GST, East Delhi ([2025] 81 TAXLOK.COM 025 (Delhi)), where it had already ordered FIR registration for forgery and fabrication of documents.

Following the same reasoning, the Court directed:

The accountant concerned (Mr Ashish Chaurasia) to appear personally before the Court.
The SHO of Uttam Nagar Police Station to serve the order and assist the investigation.
Lawyers to take precautionary verification steps before filing GST-related petitions

4. Legal Implications

This case re-emphasizes that:

Filing petitions using false affidavits or stolen identities constitutes offences of forgery and fraud under the Bharatiya Nyaya Sanhita (Sections 227 to 237, etc.).
Courts can order criminal inquiries and FIRs under Section 215 read with Section 379 of the Bharatiya Nagarik Suraksha Sanhita 2023.
Legal professionals, accountants, and GST practitioners have a duty of verification to prevent misuse of their credentials or platforms.

5. Advisory for Professionals

For Tax Consultants & Accountants

Verify KYC: Obtain and preserve Aadhaar, PAN, and proof of address personally from the client.
Meet the client physically or via verified video identification.
Do not file GST registrations or court affidavits on third-party instructions.
Maintain a client verification register or signed declaration confirming the individual’s identity.
If in doubt about authenticity — refuse engagement and inform the jurisdictional GST officer.

For Lawyers

Ensure client interaction and identity verification before attesting affidavits.
Avoid relying solely on accountants or intermediaries.
Retain digital proof of communication with the actual client.

For Victims of Identity Theft

Immediately file a police complaint and inform GST authorities if your PAN/Aadhaar is misused.
Write to GST Helpdesk (helpdesk@gst.gov.in) and seek cancellation of the fraudulent registration.
Keep copies of complaints and acknowledgement numbers as evidence for any future inquiry.

6. Author’s Analysis

The Delhi High Court’s proactive stance highlights a growing ethical risk in GST compliance practice.

While digital registration simplifies business onboarding, it has inadvertently enabled identity-based GST frauds.

The judgment in S.K. Overseas should serve as a wake-up call — professionals must treat KYC verification as a legal obligation, not a formality. The judiciary has made it clear that ignorance or blind reliance on intermediaries will not be tolerated.

7. Conclusion

The Delhi High Court has set a decisive precedent against misuse of the judicial process through forged identities.

By holding accountants and intermediaries accountable, the Court aims to cleanse GST litigation of fictitious petitions.

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Fake Firms & Stolen Identities under GST — Delhi High Court Sounds the Alarm

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