Delta Corp's tax liability soars to Rs 23,206 crore as Deltatech Gaming hit with second GST notice
With this recent tax notification, Delta Corp's cumulative tax shortfall obligation has now reached a significant sum of Rs 23,206 crore, a stark contrast to its market capitalisation of Rs 3,749 crore.
- Oct 14, 2023,
- Updated Oct 14, 2023 6:36 PM IST
Delta Corp, the casino chain, officially communicated to the stock exchanges that its subsidiary, Deltatech Gaming, has been notified of a substantial tax liability amounting to Rs 6,384 crore on Saturday.
Deltatech Gaming, previously known as Gaussian Networks, operates popular gaming applications such as Adda52 and Addagames.
In its filing with the exchange, the company stated, "The GST notice instructs Deltatech Gaming Limited to settle the alleged tax deficit, including interest and penalties. Failure to do so may result in the issuance of a show cause notice under Section 74(1) of the CGST Act, 2017."
With this recent tax notification, Delta Corp's cumulative tax shortfall obligation has now reached a significant sum of Rs 23,206 crore, a stark contrast to its market capitalisation of Rs 3,749 crore.
Previously, on September 22, the company had directly received a tax notice for Rs 11,140 crore. Furthermore, three of its subsidiaries, namely Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, were served another notice for Rs 5,682 crore.
According to the company, the amounts cited in all these notices are based on the gross bet value of games played.
The company expressed concern over the demand for GST on the gross bet value rather than the gross rake amount, highlighting that this has been an industry-wide issue. Multiple representations have already been made at an industry level to address this matter with the government.
The GST Council's decision to impose a 28 percent tax on the full face value of chips purchased for gaming has been a significant challenge for casinos and online gaming companies. This translates to players having only Rs 72 to wager for every Rs 100 worth of chips acquired. Previously, GST was levied solely on net house winnings.
In light of these challenges, Delta Corp had previously announced the postponement of its initial public offering (IPO) plan for Deltatech Gaming. For the quarter ending in September, the company reported a 1.6 percent year-on-year increase in its consolidated net profit, amounting to Rs 69.4 crore. The company's revenue saw a marginal uptick, rising from Rs 270 crore in Q2 FY23 to Rs 270.6 crore in Q2 FY24.
Delta Corp, the casino chain, officially communicated to the stock exchanges that its subsidiary, Deltatech Gaming, has been notified of a substantial tax liability amounting to Rs 6,384 crore on Saturday.
Deltatech Gaming, previously known as Gaussian Networks, operates popular gaming applications such as Adda52 and Addagames.
In its filing with the exchange, the company stated, "The GST notice instructs Deltatech Gaming Limited to settle the alleged tax deficit, including interest and penalties. Failure to do so may result in the issuance of a show cause notice under Section 74(1) of the CGST Act, 2017."
With this recent tax notification, Delta Corp's cumulative tax shortfall obligation has now reached a significant sum of Rs 23,206 crore, a stark contrast to its market capitalisation of Rs 3,749 crore.
Previously, on September 22, the company had directly received a tax notice for Rs 11,140 crore. Furthermore, three of its subsidiaries, namely Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, were served another notice for Rs 5,682 crore.
According to the company, the amounts cited in all these notices are based on the gross bet value of games played.
The company expressed concern over the demand for GST on the gross bet value rather than the gross rake amount, highlighting that this has been an industry-wide issue. Multiple representations have already been made at an industry level to address this matter with the government.
The GST Council's decision to impose a 28 percent tax on the full face value of chips purchased for gaming has been a significant challenge for casinos and online gaming companies. This translates to players having only Rs 72 to wager for every Rs 100 worth of chips acquired. Previously, GST was levied solely on net house winnings.
In light of these challenges, Delta Corp had previously announced the postponement of its initial public offering (IPO) plan for Deltatech Gaming. For the quarter ending in September, the company reported a 1.6 percent year-on-year increase in its consolidated net profit, amounting to Rs 69.4 crore. The company's revenue saw a marginal uptick, rising from Rs 270 crore in Q2 FY23 to Rs 270.6 crore in Q2 FY24.