Delta Corp, the prominent casino chain operator, has been hit with fresh notices alleging a GST payment shortfall amounting to ₹6,384 crore, as disclosed in a regulatory filing on October 14. This development follows closely on the heels of the company receiving notices for a whopping ₹16,822 crore tax shortfall less than three weeks ago.
The most recent notices were directed at Deltatech Gaming Ltd, a subsidiary of Delta Corp, and were issued by the Directorate General of GST Intelligence in Kolkata on October 13.
These notices encompass two significant components. The first notice demands ₹6,236.8 crore in taxes for the period spanning January 2018 to November 2022. The second notice seeks ₹147.5 crore for the period from July 2017 to October 2022, bringing the cumulative amount to ₹6,384.3 crore.
The regulatory filing reveals that the notice instructs Deltatech Gaming Ltd to settle the alleged tax shortfall, along with applicable interest and penalties. It also stipulates that the CEO and Executive Director of Deltatech Gaming Ltd, responsible for the company's day-to-day operations, could be liable for penalties under specific sections of the CGST Act, 2017.
Delta Corp, however, asserts in its exchange filing that the demanded amounts in the notices are based on the gross bet value of all games played during the relevant periods. The company notes that the demand of GST on the gross bet value, rather than the gross rake amount, has been a longstanding industry concern, with representations already made to the government at an industry level regarding this issue.
Notably, on September 25, Delta Corp received a notice from the Directorate General of GST Intelligence for a tax shortfall amounting to ₹11,140 crore, while three of its subsidiaries were collectively issued notices for ₹5,682 crore. These notices were related to the alleged GST payment shortfall during the period spanning July 2017 to March 2022. Delta Corp continues to grapple with this ongoing and significant tax dispute.
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