Indias largest casino chain Delta Corp has been issued an intimation by the Directorate General of GST Intelligence, Hyderabad alleging tax liability of Rs 11,139 crore along with interest and penalty for the period from July 2017 to March 2022. If the dues remain unpaid it will be served with a show-cause notice, the company said in a stock exchange filing on Friday.
Delta Corp: Sitharaman said the GST Council has recommended that valuation of supply of online gaming and actionable claims in casinos may be done based on the amount paid or payable to or deposited with the supplier.
Shares of Nazara Technologies and Delta Corp rise as the GST Council plans to review its decision to impose a 28% tax on online gaming. The ministry of electronics and IT will ask for a reevaluation of the tax after the regulatory framework for online gaming rules is developed.
Last week, the GST Council imposed a 28 per cent tax on the turnover of online gaming companies, horse racing and casinos. This means that a gamer will have to pay Rs 28 for every Rs 100 spent in an online game.
Sectorally, buying was seen in realty, healthcare, and oil & gas stocks, while selling was seen in IT, telecom, utilities, and consumer durable. Stocks that were in focus include names like Elgi Equipments, which was up 7%, J.B Chemicals & Pharmaceuticals, which gained over 6% to hit a fresh 52-week high, and Delta Corp, which fell more than 23% on Wednesday.