NEW DELHI: GST authorities have “advised” Delta Corp and three of its subsidiaries, which operate casinos in Goa and Sikkim as well as online gaming platforms, have to pay over Rs 16,800 crore in tax claims.
This is one of the highest GST claims and follows a demand of Rs 21,000 crore Gameskraftwhich was not in favor of the tax authorities in Bangalore, HC.
After an appeal High Council and a stay, the GST authorities have now gone ahead and asked Delta Corp to pay up or face a notice. Tax experts said more such demands will be imposed on other online gaming companies.
The GST Council has already decided to impose 28% tax on online gambling, casinos and horse racing, with the amendments in the Central GST Act already approved and the states expected to implement the required changes, which could start from next month .
“The amount claimed in the DG’s notice is based, among other things, on the gross stake value of all games played in the casinos during the relevant period. The demand for GST based on gross wagering value, rather than gross gaming revenue, is an industry issue.
“The company has been legally advised that the DG’s notice is arbitrary and contrary to law, and the company will pursue all available legal remedies,” Delta Corp. said.
After an appeal to the Supreme Court and a stay, the GST authorities have now gone ahead and asked Delta Corp to pay the GST claims worth Rs 16,800 crore or face a notice.
This is one of the highest GST claims and follows a demand of Rs 21,000 crore Gameskraftwhich was not in favor of the tax authorities in Bangalore, HC.
After an appeal High Council and a stay, the GST authorities have now gone ahead and asked Delta Corp to pay up or face a notice. Tax experts said more such demands will be imposed on other online gaming companies.
The GST Council has already decided to impose 28% tax on online gambling, casinos and horse racing, with the amendments in the Central GST Act already approved and the states expected to implement the required changes, which could start from next month .
“The amount claimed in the DG’s notice is based, among other things, on the gross stake value of all games played in the casinos during the relevant period. The demand for GST based on gross wagering value, rather than gross gaming revenue, is an industry issue.
“The company has been legally advised that the DG’s notice is arbitrary and contrary to law, and the company will pursue all available legal remedies,” Delta Corp. said.
After an appeal to the Supreme Court and a stay, the GST authorities have now gone ahead and asked Delta Corp to pay the GST claims worth Rs 16,800 crore or face a notice.
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