Sponsorship fraud: Anto faces GST trouble, may have to pay Rs 25 crore including penalty; notice soon

Kochi: The GST department is set to issue a show-cause notice to Anto Augustine under Section 74A of the GST Act in connection with financial transactions related to football sponsorship. The notice will demand around Rs 25 crore, including penalty, and will incorporate findings from the Special Investigation Team (SIT) probe.

GST sources said Anto did not cooperate with the recording of his statement and left the office before the process was completed.

Details of the transaction were first revealed by Reporter TV MD Anto Augustine in June 2025. Following this, a notice was issued in July, but the GST amount was not paid. Subsequently, in August, K.K. Sajini issued a summons after taking charge as the Kanhangad GST Intelligence Officer.

Following repeated summonses from GST Intelligence, Anto appeared before officials on August 3. The GST team subsequently completed the statement recording and investigation. During the statement recording, it emerged that financial transactions worth Rs 126 crore had taken place as part of the sponsorship deal.

GST officials have collected bank records from Ernakulam confirming the transactions. The records show that an agreement had been reached to make the payments in three phases, of which the first and second instalments, totalling Rs 45 crore, had been paid.

As the transaction exceeds Rs 50 lakh, and the government-constituted GST Special Investigation Team has uncovered further information, the legal proceedings are now being pursued more comprehensively. The Joint Commissioner in Kozhikode will take the decision on issuing the notice.

The notice to Anto Augustine will incorporate the findings of the GST Special Investigation Team's report. The GST payable has been assessed at Rs 22 crore. With a 15 per cent penalty, the total amount payable will be around Rs 25 crore.

Once the notice is served, Anto will be given 15 or 30 days to submit his reply. The matter will then be referred to the adjudication committee. If the amount is not paid, steps will be initiated to recover the dues.

During interrogation, Anto Augustine reportedly claimed that the Union Ministry of Finance had granted him a TDS exemption or tax-free status through the RBI. However, the GST department's assessment is that no such exemption has been granted. Officials said that even if such an exemption existed, it would fall under the jurisdiction of the Income Tax Department, whereas the present proceedings are under the GST law.

GST sources also said that the fact that the football match did not take place does not, by itself, exempt the transaction from GST liability. According to officials, since the financial transaction took place, the applicable tax and penalty are payable under the law.

However, GST officials clarified that if documentary evidence establishes that the money was returned to the account because the match did not take place, the GST paid could be refunded.

Officials also said that explanations and arguments put forward by individuals, including Dr Thomas Isaac, do not affect the GST department's legal proceedings.