GST Notice of Rs.23,200 Crore to Delta Corp; Company Says GST Demand Arbitrary:

GST Notice of Rs.23,200 Crore to Delta Corp; Company Says GST Demand Arbitrary Delta Corp, an online gaming company has received a GST demand notice of over Rs 23,200 crore. Calling it arbitrary and contrary to legal provisions, the company has said that it has not made any provision for this tax payment. Today, Delta Corp's shares are under pressure. The shares sank to Rs 143.10 in the morning, marking the day's low. Delta Corp traded at Rs 146.85 around 11:45 a.m., down 2.56%.

Decline in Net Profit

Let us tell you that the consolidated net profit of Delta Corp for the quarter ending December 2023 was Rs.34.48 crore, with a decline of 59 percent on an annual basis. During this period, the company's operating income stood at RS.181.54 crore, which is 18 percent less than a year ago. Delta Corp stated in a note posted alongside its quarterly financial results that the holding company and two of its subsidiaries received a show cause notice from the Directorate General of GST Intelligence (DGGI), Hyderabad, on September 27 for alleged GST short payment. A total of Rs 16,822.9 crore in GST was required between July 1, 2017 and March 31, 2022. On October 28, 2023, another subsidiary of Delta Corp received another notice from the DGGI in Kolkata. A total GST demand of Rs.6,384.32 crore was submitted for the period July 2017 to November 2022.

What did Delta Corp say on the notice?

Delta Corp stated on these notices that the authorities' demand for tax on gross bet value/ gross book value as compared to gross gaming revenue is a long-standing issue in the gaming sector, and industry participants have made multiple submissions to the government on this matter. "The holding company/subsidiaries filed writ petitions and received stay orders from the various high courts. Without prejudice, the holding company and its subsidiaries believe that all of these notices and tax requests are arbitrary in nature and violate legal provisions." As a result, all enterprises will pursue all legal options available to resist such tax requests and related proceedings.