Mahesh Babu's legal team says the GST commissionerate in Hyderabad has judged in an erroneous manner about tax evasion by Mahesh Babu. The legal team in a statement said that the disputed tax never came into taxable service. Without sending notices to Mahesh Babu, how the commissionarate would freezes the accounts, the legal team questioned.

The official press release from the legal team says, "The GST Commissionerate Hyderabad has attached the bank accounts for a disputed tax demand of Rs 18.5 lakhs claiming Rs 73.5 lakhs towards Tax interest and the penalty for brand ambassador services rendered in FY 2007-08 which was not taxable service. The brand ambassador services were brought in the statute by insertion of section 65(105) (zzzzq) with effect from 1-7-2010. The GST Commissionerate Hyderabad has carried out the attachment without notice when several judicial pronouncements on this issue are in favour of the taxpayer and more so when the dispute is pending before the High Court. Mr. Mahesh Babu is a law-abiding citizen complying with all fiscal legislation and has no undisputed tax payable."