Deltatech files writ petition against Rs. 6384 Crore GST Notice

Deltatech Gaming Limited, a subsidiary of Delta Corp Limited, has filed a writ suit in connection with the DGGI’s show cause notice of Rs. 6384 crore given on the business on October 13.

Deltatech Gaming Limited v. Union of India is scheduled for hearing on November 29 at the Calcutta High Court before a single judge bench led by Justice Md. Nizamuddin.

Deltatech gaming (formerly Gaussian Networks Private Limited) offers the online real money gaming platform Adda52 and was bought by Delta Corp in 2016. Adda52 is one of India’s most popular poker sites, offering a variety of card games.

The firm has participated in a number of poker events, including the World Poker Tour (WPT), which completed its fourth edition this year in April. It also offers ‘Poker Night with Stars,’ where players may win large sums of money while playing alongside celebrities.

Meanwhile, Delta Corp reaffirmed its stance on the case shortly after the tax demand notice was given, stating that the department’s assertions lack adequate legal basis and will not amount to anything in court.

In a similar situation, where a Rs.628 crore GST show cause notice was sent, the corporation was recently awarded interim relief. A Sikkim High Court single judge bench led by Justice Bhaskar Raj Pradhan found in favour of the firm and scheduled the case for a final hearing in February 2024.

While the sums vary, numerous other online gambling organisations have received identical warnings requiring them to pay taxes on a retroactive basis for their operations.

In September 2022, Gameskraft received the first-ever GST notice for Rs. 21,000 crore. However, in May of this year, the Karnataka High Court overturned the GST department’s notice, finding Gameskraft’s games in the skill-gaming category.

The case was reopened in September after the Supreme Court stayed the Karnataka High Court’s verdict. After the DGGI filed an appeal, a three-member panel led by the Chief Justice of India issued its decision.

The next hearing date, October 10, was set. However, it was unable to take place owing to constitutional bench issues. The next hearing in the Gameskraft case has been scheduled for December 15, 2023.

Meanwhile, additional online gaming firms have filed lawsuits in several High Courts, the most recent of which being Vision11 and Twelfth Man Fantasy, who were granted a stay on their GST notice by the Gujarat High Court.