Reetu | Sep 23, 2023 |
Delta Corporation receives GST Demand Notice for Rs. 11000 crore
Delta Corp informed stock exchanges on September 22 that it had received demand notice from the Directorate General of GST Intelligence, Hyderabad, for payment of shortfall tax under GST, as well as interest and penalty, for the period July 2017 to March 2022.
The first notice, for Rs.11,140 crore, was issued directly to Delta Corp. The other notice was issued for Rs.5,682 crore against three of its subsidiaries, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, bringing the total liability to Rs.16,822 crore.
In a regulatory filing, Delta Corp stated, “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.”
Delta Corp said in a regulatory filing that if they do not comply, the company will be served with a show-cause notice.
“The amount claimed in the DG Notice is based on the gross bet value of all games played at casinos during the relevant period, among other things. The demand for GST on gross bet value rather than gross gaming revenue has been an industry issue, and various representations have already been made to the Government at an industry level on this issue,” the company said.
Delta Corp also stated that it has been advised by legal counsel that the DG Notice and the tax demand are arbitrary and contrary to law, and that the company will pursue all legal remedies available to it to challenge such tax demand and related proceedings.
Delta Corp shares fell 0.029 percent to Rs.175.25 per share on the BSE on September 22.
Delta Corp, India’s largest casino company, had previously put plans to take its online gaming unit public on hold due to uncertainty surrounding the sector’s GST rate increase.
Casinos and online gaming companies have been struggling as a result of the government’s significant 28 percent GST rate imposition. The GST council decided on July 11 to levy a 28 percent tax on the turnover of online gaming companies, horse racing, and casinos.
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