Messi controversy: Anto Augustine says it was a ‘government event’; GST not payable as match did not take place

Thiruvananthapuram: The controversy surrounding the proposed visit of Argentina’s football team and Lionel Messi to Kerala has intensified following revelations by Anto Augustine that the initiative was a project of the LDF government, along with a dispute over the payment of GST.

In his statement, Anto Augustine said bringing the Argentina team and Messi to Kerala was a project of the Pinarayi Vijayan government and that he was not an individual sponsor who had come forward on his own.

U. Sharafali has also admitted that after entities, including the Gold Merchants Association, withdrew from the project, the government approached Reporter Broadcasting Company and Anto Augustine to become sponsors, with the knowledge of then Sports Minister V. Abdurahiman.

The then Sports Minister had maintained that the state government did not suffer any financial loss in connection with the project. In a press release issued on August 11, Abdurahiman said the agreement to hold the match was signed between the Argentina Football Association and the sponsor, and that the payment was transferred through a public sector bank.

At the same time, questions have been raised over the criteria used by the LDF government to select Anto Augustine as a sponsor, given that he is an accused in several cases, including the Muttil illegal tree-felling case and the Bank of Oman fraud case.

Meanwhile, the dispute over GST has also intensified. Anto Augustine has maintained that he is not willing to pay the GST demanded in connection with the proposed event.

GST officials, however, have stated that since financial transactions took place in connection with the sporting event, Anto Augustine and Reporter Broadcasting Company are legally liable to pay the applicable GST and penalty.

Following multiple notices issued over the dues, which were detected during the tenure of the Pinarayi Vijayan government itself, Anto Augustine appeared at the GST office in Kanhangad on August 3 and gave his statement.

Anto has maintained that since the match did not take place, he is not liable to pay the GST or penalty. GST officials, however, maintain that the argument has no legal validity. According to the department, GST has to be paid even if the event did not ultimately take place, after which the amount can be claimed as a refund by filing the required return. The department maintains that the tax cannot simply be avoided on the grounds that the match was cancelled.

Senior CPM leaders, including former Finance Minister Thomas Isaac, have come out in support of Anto Augustine, describing the GST department's action as ‘GST tyranny’.

Anto Augustine is now reiterating the same argument put forward by Thomas Isaac, that GST need not be paid because the proposed match did not take place.