The Gujarat State Goods and Services Tax (SGST) department has uncovered a massive bogus billing racket worth ₹560 crore in Jamnagar, resulting in alleged tax evasion of ₹112 crore.
According to officials, the racket was masterminded by Jamnagar-based chartered accountant Alkesh Pedhadiya, who operated an extensive network of fake firms to issue fraudulent invoices and claim input tax credit (ITC) without any actual movement of goods.
Acting on specific intelligence, the SGST conducted simultaneous raids on October 3 at 25 locations, including Pedhadiya’s residence and the office of his firm, BRAHM Associates. The operation involved 27 teams from GST offices across the state.
Investigations so far have revealed that 14 fake firms were created to facilitate bogus billing and fraudulent ITC claims. Preliminary statements indicate that several of these firms were directly controlled by Pedhadiya.
The department also found misuse of GSTIN credentials of genuine taxpayers, who have expressed shock over the breach of trust and are considering filing FIRs.
During the searches, officials seized key evidence including documents, computers, and digital storage devices. The data indicates multiple layers of financial transactions and fund diversion through various bank accounts.
Several firms under scrutiny have accepted the findings and agreed to pay their pending tax liabilities along with applicable interest and penalties.