This tax liability is for the period from July 2017 to March 2022. Delta Corp stated in its regulatory filing that if they fail to do so, a show-cause notice will be issued to the company.
Delta Corp also mentioned that it has been legally advised that the demand for a DGG notice and the demand for taxes are arbitrary and contrary to law. The company will pursue all available legal remedies challenging such tax demands and related actions.
In the meanwhile, on September 22, Delta Corp’s shares closed 0.029 percent lower at INR 175.25 per share on the BSE.
Delta Corp, India’s largest casino company, had previously put on hold its plans to take its online gaming unit public due to uncertainties related to the increase in GST rates in this sector. “When it comes to online gaming, the investing community wants absolute clarity, and they want a clear picture of what the road ahead looks like, and without that, nobody is going to put a dollar into any new investment, particularly in a sector that,” said Delta Corp’s CFO, Hardik Dhebar, “has this kind of overhang.”
Casino and online gaming companies have been grappling with the government’s imposition of a hefty 28 percent GST rate on their businesses. On July 11, the GST Council decided to levy a 28 percent tax on online gaming companies, horse racing, and casino operations.