November 25, 2024

Casino operator Delta Corp faces Rs 16,800 crore GST claims

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NEW DELHI: GST authorities have “advised” Delta Corp and three of its subsidiaries, which are in the business of operating casinos in Goa and Sikkim as well as online gaming platforms, to pay over Rs 16,800 crore in tax claims.
This is among the highest GST claims and follows a Rs 21,000 crore demand on Gameskraft, which didn’t go in favour of tax authorities in Bangalore HC.
Following an appeal in Supreme Court and a stay, GST authorities have now gone ahead and asked Delta Corp to pay, else face a notice. Tax experts said more such demands are going to be made from other online gaming companies.
The GST Council has already decided to levy 28% tax on online gaming, casinos and horse racing with the amendments to Central GST Act already approved and states expected to make the required changes, which may kick in from next month.
“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.
“The company has been legally advised that the DG notice is arbitrary and contrary to law, and the company will pursue all legal remedies available to it,” Delta Corp stated.
Following an appeal in Supreme Court and a stay, GST authorities have now gone ahead and asked Delta Corp to pay the GST claims worth Rs 16,800 crore, else face a notice.



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