Delta Corp Faces Daunting Tax Challenge: Rs 23,206 Crore in Liabilities Linked to Deltatech Gaming's

• Delta Corp, a casino chain, has received a substantial tax notice through its subsidiary, Deltatech Gaming, amounting to Rs 6,384 crore, related to alleged tax deficits, interest, and penalties.

• Delta Corp previously received a tax notice for Rs 11,140 crore on September 22, and three of its subsidiaries were served notices for Rs 5,682 crore, all based on the gross bet value of games played.

• The cumulative tax shortfall obligation for Delta Corp now stands at a significant sum of Rs 23,206 crore, while its market capitalization is only Rs 3,749 crore.

• The company has expressed concern over the demand for GST on the gross bet value rather than the gross rake amount, highlighting that this issue affects the entire industry. They have made representations at an industry level to address this concern with the government.

• The GST Council's decision to impose a 28 percent tax on the full face value of gaming chips has been challenging for casinos and online gaming companies, reducing players' betting capacity.

• Due to these challenges, Delta Corp postponed its initial public offering (IPO) plan for Deltatech Gaming.

• In the quarter ending in September, Delta Corp reported a 1.6 percent year-on-year increase in 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. Source : https://www.businesstoday.in/latest/corporate/story/delta-corps-tax-liability-soars-to-rs-23206-crore-as-deltatech-gaming-hit-with-second-gst-notice-402028-2023-10-14