By: Express News ServiceAhmedabad | October 10, 2025 12:00 AM IST 2 min readSeveral firms under investigation are said to have accepted SGST’s findings and have undertaken to discharge their tax liabilities, along with applicable interest and penalties.Gujarat’s State Goods and Services Tax (SGST) department on Thursday said it uncovered a tax evasion racket in Jamnagar with bogus billing of Rs 560 crore and total tax evasion to the tune of Rs 112 crore.The SGST alleged the racket was masterminded by Jamnagar-based chartered accountant Alkesh Pedhadiya through an elaborate bogus billing network.In a statement on Thursday, the department said, “Acting on specific intelligence and following sustained surveillance, the department conducted simultaneous search operations on October 3, at 25 premises, including the office of BRAHM Associates, a CA firm in which the prime accused is a partner and also his residence. The operations were carried out by 27 teams drawn from GST offices across the state in terms of the provisions of the Gujarat Goods and Services Tax Act.”Regarding the outcome of these raids, the department said, “So far, the investigations have revealed the involvement of 14 non-genuine taxpayer (NGTP) firms in issuing fake invoices and enabling fraudulent Input Tax Credit (ITC) claims without actual movement of goods. Preliminary inquiries and statements of owners of firms under investigations indicate that many of these firms were directly controlled and managed by CA Alkesh Pedhadiya.”The department said it found rampant misuse of GSTIN credentials of bonafide taxpayers, who expressed shock at the exploitation and trust under the pretext of GST compliance services. The taxpayers indicated they are considering lodging FIRs for fraud and breach of trust.During the searches, SGST officials seized documents, computers and other digital storage devices containing crucial evidence of fictitious invoicing and manipulation of financial records. Primary analysis revealed multiple layers of financial transactions routed through various bank accounts, indicating sophisticated fund diversion mechanisms.Several firms under investigation are said to have accepted SGST’s findings and have undertaken to discharge their tax liabilities, along with applicable interest and penalties.Stay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:ahmedabad