Delta Corp Shares Decline 10% Following GST Notice for ₹6,384 Crore

Delta Corp Shares Decline 10% Following GST Notice for ₹6,384 Crore

VoM News Desk | October 16, 2023 | 11:40 AM IST | Breaking News | Follow on Google News

Delta Corp Shares Decline 10% Following GST Notice for ₹6,384 Crore

Delta Corp Shares Decline 10% Following GST Notice for ₹6,384 Crore

Delta Corp, an Indian casino major, witnessed its shares fall by 10 percent on Monday after the company’s subsidiary, Deltatech Gaming Limited, received a Goods and Services Tax (GST) notice for the payment of ₹6,384 crore due to a tax shortfall. The stock hit a 52-week low of ₹126 apiece.

Key points:

• Delta Corp’s shares have been declining since mid-July 2023 due to the Indian government’s decision to increase GST on online gaming and casinos.
• A GST notice received by the company on September 22 added to the pressure on its shares, and the latest notice received by Deltatech Gaming Limited further exacerbated the stock’s decline.
• Since the GST notice in September, the stock has lost approximately 30 percent of its value.

According to the company’s exchange filing:

• Deltatech Gaming Limited, a subsidiary of Delta Corp, received an intimation for payment of shortfall tax under Section 74(5) of the CGST Act, 2017 and the West Bengal GST Act, 2017, from the Directorate General of GST Intelligence, Kolkata, on October 13, 2023.
• The notice advises Deltatech Gaming Limited to pay the alleged tax shortfall, interest, and penalties, and warns that a show cause notice will be issued to the Company under Section 74(1) of the CGST Act, 2017 if payment is not made.

The company also stated:

• The amounts claimed in the notice are based on the gross bet value of all games played during the relevant period. The demand of GST on gross bet value, rather than gross rake amount, has been an industry issue, and the industry has made representations to the government regarding this matter.
• On September 22, 2023, Delta Corp received a GST notice for the payment of ₹11,139 crore from the Directorate General of GST Intelligence, Hyderabad.

Please note that regulatory developments and tax issues can significantly impact the financial performance and stock prices of companies in various industries.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.