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Business News/ Markets / Stock Markets/  Delta Corp shares hit 52-week low as company's subsidiary receives GST notice; stock down 30% in less than a month
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Delta Corp shares hit 52-week low as company's subsidiary receives GST notice; stock down 30% in less than a month

Delta Corp shares have been under hammer since mid July 2023. Shares of the Indian casino major witnessed a decline after Government of India (GoI) decided to increase GST on online gaming, casinos, etc.

Stock market today: Delta Corp shares hit new 52-week low.Premium
Stock market today: Delta Corp shares hit new 52-week low.

Stock market today: Delta Corp shares fell 10 percent on Monday after the company's subsidiary, Deltatech Gaming Limited, received a Goods and Services Tax (GST) notice for payment of 6,384 crore owing to tax shortfall. The stock hit a 52-week low of 126 apiece.

Delta Corp shares have been under hammer since mid July 2023. Shares of the Indian casino major witnessed a decline after Government of India (GoI) decided to increase GST on online gaming, casinos, etc. 

A GST notice received by the company on September 22 came as an additional blow to the company's shares. And the fresh notice received by Deltatech Gaming Limited has only made matters worse for the stock.

The stock has lost around 30 percent since the GST notice in September.

The stock opened at 133 apiece today and went to hit a low of 126. 

In an exchange filing, the company said, "In addition to our disclosures dated September 22, 2023, please note that Deltatech Gaming Limited, a subsidiary of the Company has received an intimation for payment of shortfall tax under Section 74(5) of the CGST Act, 2017 and West Bengal GST Act, 2017, from the Directorate General of GST Intelligence, Kolkata, on October 13, 2023." 

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"The notice advises Deltatech Gaming Limited to pay the alleged tax shortfall along with interest and penalty failing which a show cause notice will be issued to the Company under Section 74(1) of the CGST Act, 2017," Delta Corp said. 

“The amounts claimed in the abovementioned notice are inter alia based on the gross bet value of all games played during the relevant period. Demand of GST on gross bet value, rather than gross rake amount, has been an industry issue and various representations have already been made to the Government at an industry level in relation to this issue," it added.

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On 22nd September, 2023, Delta Corp received GST notice for payment of tax to the tune of 11,139 crore. The Directorate General of GST Intelligence, Hyderabad, had issued the notice to the company in this regard.

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Asit Manohar
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Published: 16 Oct 2023, 10:15 AM IST
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