The Gujarat State Goods and Services Tax (SGST) Department has booked a Jamnagar-based Chartered Accountant for his alleged role in orchestrating a Rs 560 crore bogus billing racket involving fraudulent Input Tax Credit (ITC) claims worth Rs 112 crore.
According to an official release, the accused, CA Alkesh Pedhadiya, allegedly facilitated fake billing through 14 non-genuine taxpayer firms, enabling the wrongful availing and passing of ITC without any actual supply of goods or services.
The department launched a large-scale search operation on October 3, 2025, acting on specific intelligence inputs about the racket. The raids were conducted at 25 locations across Gujarat, including Pedhadiya's private office in Jamnagar and his residence.
A total of 27 teams drawn from various GST offices across the state participated in the search operation under the provisions of the Gujarat Goods and Services Tax Act, 2017. Officials seized a trove of incriminating evidence, including documents, computers, and digital records, that revealed patterns of fake invoices and manipulated financial transactions.
Preliminary analysis of the seized material pointed to multiple layers of fund diversion through several bank accounts, indicating a well-planned mechanism to camouflage the flow of illicit funds.
The SGST Department said that several of the firms under investigation have admitted to the irregularities and agreed to pay around ₹33 crore towards tax, interest, and penalties.
Authorities have stated that further investigations are underway to identify other individuals and entities linked to the network, and to quantify the full extent of tax evasion and money laundering involved.
This latest action is part of Gujarat's ongoing statewide drive against fake ITC and bogus billing networks, aimed at safeguarding government revenue and ensuring tax compliance across sectors.
CAclubindia
