How MOTA BHAI did BAND BAJA BARAT of GST

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How MOTA BHAI did BAND BAJA BARAT of GST👇

Worth ₹ 1,50,00,00,00,000 x 18%

(₹15,000 Crores)


Today, here's a case study about how Mukesh Ambani saved or at least delayed(for 3 years) paying GST on an "Effectively free" commodity.

Yes, it's about the legendary JIO PHONE 📱


1 July 2017 - GST came into effect


21 July 2017 - AGM of Reliance


At AGM they launched a feature phone "effectively free", buyers have to deposit 1500 as security which will be refunded after 3 years.


Looking great, right?


There comes the terms and conditions of Refund - Check Image


1. "Refundable deposit" is not applied towards consideration of any "Supply".

( for Section 2(31) of CGST Act, 2017👇)


2. The recipient had to recharge for a minimum of Rs. 1500 per annum.


'They decreased the prices of plans later on, so that (2.) can not be complied with.'


Now let's check CGST Act, 2017

Section 2(31) - Check Image


Deposit is not considered as supply unless APPLIED as consideration for any Supply.


That means they were not liable to pay GST in 2017 because Rs 1500 was not consideration for Jio Phone but only a Security deposit which will be refunded.


• Jio sold over 100 Million (10 crores) Jio phones till Dec 2021.

(10 Crore x 1500=15000 Cr.)


• Jio at least delayed (if not saved) payment of GST by 3 years.


"The rich always figure out how to play with taxes😉"


At a time when everyone was figuring out what is GST, Jio played it one-handedly 👏.


2 questions to all the tax-geeks out there!


What do you think, Jio applied the money towards consideration after the refund period (3 years) or there is any other provision relating to this case?🌝


If yes, then at what rate?

(Rate on Mobile Phones, when Jio Phone was launched - 12%

After Union Budget 2020 - 18%)


PS - I don't know the answer😂


That's all for today

Signing off

Devansh Singla 

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