Delta Corp receives another notice from GST department of Rs 6,834 crore

16 Oct 2023 , 10:02 AM

Delta Corp informed the stock markets on October 14 that its subsidiary Deltatech Gaming has received an indication for payment of deficiency tax in the amount of Rs 6,384 crore.

Deltatech Gaming, formerly known as Gaussian Networks, is the developer of gaming programs such as Adda52 and Addagames.

The GST notification urges Deltatech Gaming Limited to pay the alleged tax shortfall, plus interest and penalties, or a show cause notice would be issued to the company under Section 74(1) of the CGST Act, 2017,’ the company said in an exchange filing.

Delta Corp’s total tax liability has increased to Rs 23,206 crore as a result of this recent tax notice. Delta Corp has a market capitalization of Rs 3,749 crore.

On September 22, it was served with a Rs 11,140 crore tax notice. Another notice had been issued for Rs 5,682 crore against three of its subsidiaries: Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises.

The amounts claimed in all notices, according to the company, are based on the gross bet value of games played.

Casinos and online gaming enterprises are battling with the GST council’s decision to levy a 28 percent tax on the entire face value of playing chips purchased. That is, for every Rs 100 worth of chips acquired, the player receives just Rs 72 to gamble. Previously, GST was only levied on net house winnings.

 

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