Aadhaar-PAN Misuse: Clay Pot Maker Receives ₹1.25 Crore GST Notice, How to Protect Your Documents

In a shocking case of identity misuse, a small-time clay pot maker in Raebareli, Uttar Pradesh, was slapped with a ₹1.25 crore Goods and Services Tax (GST) notice. The notice, which came as a complete shock to Mohammad Saeed, was the result of fraudsters misusing his Aadhaar and PAN details to register a fake firm in his name.

Saeed, who earns his livelihood selling clay cups and small utensils, had never operated any large business. “We sell a few dozen clay cups and small pots every day. We never imagined we could run a business worth crores,” he said. He suspects that his Aadhaar and PAN information were exploited to create a fraudulent company that now faces massive tax liability.

Following the notice, Saeed and his family approached local authorities. They emphasized that they had never shared their documents with anyone for business purposes and have no connection with the company mentioned in the GST notice. The family has requested a thorough cyber and financial investigation to identify the responsible parties.

Experts Stress Stronger KYC Verification

This incident highlights the urgent need for robust Know Your Customer (KYC) systems to protect economically vulnerable individuals from document misuse. With increasing digital transactions and online registrations, stringent verification processes are critical to prevent fraudsters from exploiting Aadhaar and PAN details.

In recent years, several such cases have surfaced across India, where Aadhaar and PAN details were misused to create companies, generate fake invoices, and claim input tax credits. Experts warn that without strict monitoring and verification, small citizens remain at risk of being dragged into large-scale financial fraud.

How to Protect Your Documents

Authorities recommend using masked Aadhaar for online transactions, keeping your PAN and Aadhaar details confidential, and regularly monitoring official notices or financial records to detect any fraudulent activity early.