UDF Government in Keralam Following Modi Government’s Model of Media Crackdown: Thomas Isaac

Thiruvananthapuram: CPI(M) central committee member T M Thomas Isaac alleged that the V D Satheesan-led Kerala government was targeting the media in the state in a manner similar to the Narendra Modi government's treatment of the media in the country.

Isaac alleged that a case was being pursued against Reporter TV without a proper basis and that the media organisation was being targeted over GST-related allegations. His remarks come amid an investigation into alleged financial irregularities linked to Reporter Broadcasting Company (RBC) and its proposed initiative to bring Lionel Messi and the Argentina national football team to Keralam.

The Special Investigation Team probing the case has been examining the financial transactions connected with the proposed event. A preliminary inquiry and subsequent investigation had also flagged an alleged GST liability of around Rs 25.78 crore, including IGST allegedly not paid under the reverse charge mechanism on foreign remittances.

Isaac said the GST Commissioner should clarify under which provision the investigation against Reporter TV was being conducted. He argued that GST could legitimately be levied under the reverse charge mechanism when an advance payment is made for procuring services from a foreign entity. If tax was not paid on such an advance, he said, penalties could also be imposed under Section 74.

However, Isaac questioned the continuation of the tax investigation after the proposed service from the Argentina Football Association did not materialise. He argued that GST is linked to a taxable supply and questioned the basis for continuing the proceedings if the proposed service was not ultimately provided.

He said an investigation could be ordered if there were allegations of forged documents or manipulation of invoices to evade tax. But, he argued, the circumstances surrounding the proposed Argentina team's visit needed to be considered before imposing tax liability.

Isaac also questioned what loss the state government had suffered from the proposed event, arguing that Reporter TV and its associated company had borne the financial risk of bringing the football team to Keralam. The proposed event had involved a reported remittance of around Rs 126 crore to the Argentine Football Association, while the government had acted as a facilitator.

He said the issue should concern traders and businesses across Keralam because it could create uncertainty over the extent to which the GST authorities could intervene in commercial transactions. He also compared the proposed football event with programmes organised by other media organisations and argued that media houses routinely invest in events and initiatives as part of their activities.

The SIT, however, has been given a wider mandate to examine the entire transaction, including the selection of RBC as sponsor, sponsorship amounts, financial transactions and whether any private entity received undue benefit or caused losses to the government or other public authorities.

Isaac described the GST investigation as politically motivated and demanded that the authorities explain the legal basis for the action against Reporter TV.