Delta Corp tanks 15%, hits 52-week low on tax notice of Rs 16,822 crore

Shares of Delta Corp were locked in the temporary lower circuit of 15 per cent at Rs 149.10, hitting a 52-week low on the National Stock Exchange (NSE) on Monday at 09:41 AM, after the company said received a tax notice totaling of Rs 16,822 crore last Friday, September 22.

It also received interest and penalty from the Directorate General of GST for the period July 2017 to March 2022.

The stock of  the casino operator fell below its previous low of Rs 173.75 touched on March 29, 2023. The stock trades under the future & option (F&O) segment, which doesn't have any circuit limit. A combined 1.44 million equity shares have, thus far, changed hands, and there are pending sell orders for 17.97 million shares on the NSE and BSE.

In an exchange filing after market hours on Friday, Delta Corp announced that one notice for Rs 11,140 crore has been raised 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.CLICK HERE FOR DETAILS

The company has received an intimation for payment of shortfall tax under Section 74(5) of the CGST Act, 2017 and Goa SGST Act, 2017, from the Directorate General of GST Intelligence, Hyderabad (“DG Notice”), Delta Corp said.

The notices advise the company and/or its subsidiary to pay the alleged tax shortfall along with interest and penalty, failing which a show cause notice will be issued to the company and/or its subsidiary under Section 74(1) of the CGST Act, 2017 and Goa SGST Act, 2017.

Delta Corp said the amounts claimed in the DG Notices are 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.

Delta Corp further said  the company and its subsidiaries have been legally advised that the DG Notice and the tax demand is arbitrary and contrary to law, and the Company will pursue all legal remedies available to it to challenge such tax demand and related proceedings.CLICK HERE FOR PRESS RELEASE