Last updated: Oct 16, 2023 10:34 IST
Delta Corp shares plummet 10%
Today’s fall has caused the stock to lose about 29 percent of its value over the past month.
Delta Corp shares have been under the hammer since mid-July 2023. Shares of Goa-based casino operator Delta Corp fell another 10 percent on BSE today after the company’s arm Deltatech Gaming received a Goods and Services Tax (GST) shortfall notice worth Rs 6,384 crore.
Today’s fall has caused the stock to lose about 29 percent of its value over the past month.
The latest announcement takes the group’s total demand to well above Rs 23,000 crore, significantly higher than the company’s market capitalization of Rs 3,749 crore.
Over the past month, casino company shares have fallen nearly 22 percent. Deltatech Gaming, formerly Gaussian Networks, runs gaming apps such as Adda52 and Addagames.
“The GST notice advises Deltatech Gaming Limited to pay the alleged tax deficiency along with interest and penalty. If not, a show-cause notice will be issued to the company under Section 74(1) of the CGST Act, 2017,” the company said in the exchange filing.
On September 22, the company received a direct tax return of Rs 11,140 crore. Three of its subsidiaries, Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises, were also issued notices of Rs 5,682 crore.
The amounts claimed were based on the gross stake value of games played, the company said.
“The demand for GST based on gross stake value, rather than gross rake amount, has been an industry issue and several government representations have already been made at the sector level on this issue,” the report said.
Casinos and online gaming companies are facing challenges following the GST Council’s decision to impose a 28 percent tax on the full face value of chips purchased for playing. This means that for every chips worth Rs 100 purchased, the player actually receives only Rs 72 to bet. Previously, GST was applied only to net house profits.
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