Delta Corp receives additional notices of GST shortfalls of Rs 6,384 crore
Delta Corp has received additional notices of claimed Goods and Services Tax (GST) shortfalls totaling Rs 6,384 crore, according to a regulatory filing by the casino chain operator on October 14.
“The amounts stated in the notice are based, inter alia, on the gross wagered value of all games played during the relevant period. Demanding GST on the gross stake value and not on the gross rake amount is an industry concern and various submissions have already been made to the government at the industry level regarding this issue,” the company said in the filing.
The notice also notified that the CEO and Executive Director of Deltatech Gaming Limited will be liable for “penalty under Section 122(3)(a) of the CGST Act, 2017 read with the West Bengal GST Act, 2017 y,” the Read notification.
“The company and its subsidiary will use all legal remedies available to them to contest such tax claims and related proceedings,” the company said in the regulatory filing.
Delta corp had earlier received a similar notice from the government – on September 22 – to pay tax of $1.34 billion along with interest and penalty for the period July 2017 to March 2022.
After receiving the previous notice, the company’s shares fell 15 percent within an hour after the market opened on September 25, which was the next trading session, reaching the lower circuit for the day.
While global investors urged Prime Minister Modi to review the 28 percent gaming tax, citing an adverse impact on future investments of around $4 billion, the country’s revenue minister made it clear there was no need to rethink the tax.
On the other hand, gaming companies have started to feel the impact of the new 28 percent GST tax, and gaming app Mobile Premier League last month said it would lay off 350 employees to “survive” the tax.
Delta Corp shares have lost about 29 percent since the government proposed the new 28 percent GST in July.
Indian casino operator Delta Corp reported a marginal 1.7 percent rise in second-quarter profit on Oct. 11, helped by a drop in tax expenses. The Pune-based firm’s consolidated net profit for the quarter ended Sept. 30 rose to 694.4 million Indian rupees ($8.35 million) from 682.5 million rupees a year earlier, it said in an earlier filing. declaration.
The company’s tax expense in the quarter fell 7.4%, making way for profits as total revenue was flat with a 0.2% rise to 2.71 billion rupees.
Revenue from the key casino games division rose 3.4%, while revenue from the smaller online skill games division – which includes poker and rummy games – fell almost 14%.