“Delta Corp Faces ₹11,139 Crore GST Demand: India’s Gaming Giant Takes Legal Action”
Delta Corp, India’s largest casino company, has received a notice from the Directorate General of GST Intelligence, Hyderabad, demanding ₹11,139 crore in GST, interest, and penalties for the period between July 2017 and March 2022. The company, considering the demand arbitrary and contrary to law, plans to pursue legal remedies while the gaming industry grapples with the GST rate increase.
Delta Corp, a prominent casino chain in India, revealed on September 22 that it has received a notice from the Directorate General of GST Intelligence, Hyderabad, regarding a significant Goods and Services Tax (GST) liability. The demand amounts to a staggering ₹11,139 crore, inclusive of interest and penalties, covering the period from July 2017 to March 2022.
In a regulatory filing, Delta Corp confirmed the receipt of the notice, which instructs the company to settle the alleged tax liability. Failing to do so may result in a show-cause notice from the authorities.
“The DG Notice advises the Company to pay an alleged tax liability of INR 1,11,39,61,03,423 along with interest and penalty for the period from July 2017 to March 2022,” stated Delta Corp in the filing.
The basis for this demand, according to the company, is the gross bet value of all games played at its casinos during the specified period. Delta Corp noted that the imposition of GST on gross bet value, rather than gross gaming revenue, has been a longstanding issue within the industry. The company and others have previously made representations to the government concerning this matter at the industry level.
Delta Corp has sought legal counsel and intends to challenge the DG Notice and the associated tax demand through all available legal avenues. The company maintains that the notice and demand are arbitrary and contrary to the law.
In response to these developments, Delta Corp’s shares experienced a marginal decrease, ending the day 0.029 percent lower at ₹175.25 per share on the Bombay Stock Exchange (BSE).
Delta Corp, India’s largest casino operator, had previously postponed plans to take its online gaming unit public due to uncertainties surrounding the increase in the GST rate affecting the sector.
“The investing community obviously would want absolute crystal clarity when it comes to online gaming and they would want a clear picture as to what the way forward is and without which, nobody is going to put $1 into any new investment, especially in a sector which has this kind of overhang,” explained Delta Corp’s Chief Financial Officer, Hardik Dhebar.
The gaming industry in India has been grappling with the government’s imposition of a major 28 percent GST rate. On July 11, the GST Council decided to apply a 28 percent tax on the turnover of online gaming companies, horse racing, and casinos, causing considerable concerns and uncertainties in the sector.
Sources By Agencies
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