Delta Corp Shares Hit 52-Week Low After Tax Notices Total Rs 23,000 Crore

16 Oct 2023 , 02:11 PM

Delta Corp Limited witnessed an 8.6% drop in its shares, hitting a 52-week low of Rs 128 during early trading on October 16. The decline continued for the third consecutive session, following a notice to a subsidiary demanding payment of Rs 6,384 crore for tax shortfall.

This recent notice has escalated the total demand from the group to well over Rs 23,000 crore, significantly surpassing the company’s market capitalization of Rs 3,749 crore. In the last month, the casino company’s stock plummeted by nearly 22%.

Deltatech Gaming, previously Gaussian Networks, operates gaming apps like Adda52 and Addagames. The GST notice instructs Deltatech Gaming Limited to pay the alleged tax shortfall, along with interest and penalty. Failure to comply will result in a show cause notice issued to the company under Section 74(1) of the CGST Act, 2017.

On September 22, the company received a direct tax notice amounting to Rs 11,140 crore. Additionally, three subsidiaries—Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises—received a notice for Rs 5,682 crore.

The tax claims were based on the gross bet value of games played, according to the company. The industry grapples with the challenge of the GST council’s decision to impose a 28% tax on the entire face value of chips bought for playing. Previously, GST was applied solely to the net house winnings, and this change affects both casinos and online gaming companies.

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