The tax liability is for a period from July 2017 to March 2022. If they fail to do so, the company will be served with a show-cause notice, Delta Corp said in the regulatory filing.
Casino chain Delta Corp on September 22 informed the stock exchanges that it has received intimations from the Directorate General of GST Intelligence, Hyderabad for payment of shortfall tax under GST along with interest and penalty for the period from July 2017 to March 2022.
The first notice, for Rs 11,140 crore has been raised directly against Delta Corp. The other notice, for Rs 5,682 crore has been raised against three of its subsidiaries — Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises, taking the total liability to Rs 16,822 crore.
“The DG Notice advises the Company to pay an alleged tax liability of INR 1,11,39,61,03,423 along with interest and penalty for the period
from July 2017 to March 2022,” Delta Corp said in a regulatory filing.
If they fail to do so, the company will be served with a show-cause notice, Delta Corp said in the regulatory filing.
“The amount claimed in the DG Notice is inter alia based on the gross bet value of all games played at the casinos during the relevant period. Demand of GST on gross bet value, rather than gross gaming revenue, has been an industry issue and various representations have already been made to the Government at an industry level in relation to this issue,” the company said.
Delta Corp also mentioned that it has been legally advised that the DG Notice and the tax demand are arbitrary and contrary to law, and the company will pursue all legal remedies available to it to challenge such tax demand and related proceedings.
Meanwhile, shares of Delta Corp on September 22 ended 0.029 percent lower at Rs 175.25 a piece on BSE.
Considered India’s largest casino company, Delta Corp earlier put the plans of taking its online gaming unit public on hold due to the uncertainties pertaining to the GST rate increase on the sector.