DeltaCorp’s 20% Fall: The Impact of the Rs 11,139 Crore GST Notice

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DeltaCorp: A GST Notice of Rs 11,139 Crore

DeltaCorp, India’s largest casino operator, has recently been served with a Goods and Services Tax (GST) notice amounting to a staggering Rs 11,139 crore. This development has sent shockwaves through the industry and has raised several questions about the taxation policies related to the gaming and casino sector in India. In this blog post, we delve into the details of this notice and its implications for DeltaCorp and the wider casino industry.

DeltaCorp: An Overview

DeltaCorp Limited, previously known as Arrow Webtex Ltd, is the only listed Indian gaming and hospitality company that owns and operates casinos and hotels. The company’s major portfolio of assets, which includes offshore casinos and hospitality services, falls under the banner of Deltin Casinos & Hotels. DeltaCorp operates in three segments: Casino Gaming, Online Skill Gaming, and Hospitality.

The GST Notice

The GST notice served to DeltaCorp requires the company to pay Rs 11,140 crore along with interest and penalty for the period July 2017 to March 2022. The tax payment notice to the company exceeds its current market capitalisation of Rs 4,228.10 crore. The GST amount claimed is based on the gross bet value of all games played at the casinos during the relevant period.

In addition to DeltaCorp, its two subsidiaries, Highstreet Cruises and Entertainment Pvt. Ltd and Delta Pleasure Cruise Company Private Limited, have also been served notices. While the total outstanding for DeltaCorp stands at over Rs 628 crore, it is at Rs 3289.94 crore for Highstreet Cruises and Rs 1765.21 crore for Delta Pleasure Cruise Company.

Implications for DeltaCorp

The GST notice has had a significant impact on DeltaCorp’s share prices. Following the announcement of the tax payment notice from the government, shares of DeltaCorp fell nearly 20% to their 52-week low of Rs 140 on the NSE.

The tax notice comes at a time when the company is already facing heat over the recent move in July by the country’s Goods and Services Tax (GST) Council to impose a 28% indirect tax on the money collected by gaming companies from customers.

GST on Casinos in India

The GST Council in India has decided to retain a 28% tax on online gaming, casinos, and horse racing. This tax is likely to come into effect on October 1, 2023, and will be reviewed after six months from its implementation. The tax will be imposed on entry level and not on winnings.

Conclusion

The GST notice served to DeltaCorp has brought attention to the taxation policies related to casinos in India. It remains to be seen how this development will impact not just DeltaCorp but also other players in the casino industry. As we await further developments in this case, it is clear that this issue has significant implications for taxation policies related to gaming and casinos in India.

Disclaimer

The information provided in this blog post is for informational purposes only. While every effort has been made to ensure the accuracy of the information, it is subject to change and should not be used as a substitute for professional advice. Please consult with a professional advisor before making any decisions based on this information. The author and publisher disclaim any liability in connection with the use of this information.

Keywords: DeltaCorp, GST Notice, Casino Operator, Taxation Policies, Gaming Industry, Stock Fall,Stock Crash,News,

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