Delta Corp disclosed in a regulatory filing on 14 October that it has received further notifications concerning alleged Goods and Services Tax (GST) shortfalls, amounting to a total of Rs 6,384 crore.
The claims within these notices are primarily calculated based on the overall wagering value of all games played during the relevant period.
“The demand for GST on the gross wagering value, rather than the gross rake amount, has been a subject of concern within the industry, and the company stated that various representations have already been made at the industry level to address this matter with the government,” the company stated in its filing.
The notice further indicated that the CEO and Executive Director of Deltatech Gaming Limited could potentially face penalties as per Section 122(3)(a) of the CGST Act, 2017 in conjunction with the West Bengal GST Act, 2017.
”Company and its subsidiary will pursue all legal remedies available to them to challenge such tax demands and related proceedings,” the company asserted in the regulatory filling.
It may be recalled that Delta Corp had been issued a comparable notice from the government on 22 September, requiring them to remit a tax amount of USD 1.34 billion, inclusive of interest and penalties, for the period spanning July 2017 to March 2022.
Following the receipt of the earlier notice, the company’s stock experienced a sharp decline of 15 per cent within one hour of the stock market opening on 25 September, the following trading session, triggering the lower circuit for the day.
