Delta Corp gets another GST shortfall notice of ₹6,384 crore

Delta Corp, a leading player in the casino and gaming industry, finds itself in the midst of a tax controversy once again. This time, it's a substantial Goods and Services Tax (GST) shortfall notice, totaling a staggering ₹6,384 crore. In this article, we will delve into the details of this latest development, its potential implications, and what it means for Delta Corp.

 

Section
1. Introduction
2. Delta Corp - A Snapshot
3. The Latest GST Shortfall Notice
4. Industry-Wide Concerns
5. Delta Corp's Response
6. Comparing with Previous Notices
7. Financial Implications
8. Conclusion
9. Stay Informed

 

Delta Corp - A Snapshot

Before we dive into the specifics of the recent GST shortfall notice, let's take a moment to understand the significance of Delta Corp. As one of the key players in India's gaming and entertainment industry, Delta Corp operates a chain of casinos and resorts, catering to a diverse clientele.

 

The Latest GST Shortfall Notice

On October 14, 2023, Delta Corp disclosed the receipt of fresh GST shortfall notices. These notices, issued to Deltatech Gaming Ltd, a subsidiary of Delta Corp, came from the Directorate General of GST Intelligence, Kolkata, on October 13.

The two notices present the following key details:

1. Notice 1: A tax demand of ₹6,236.8 crore for the period spanning January 2018 to November 2022.

2. Notice 2: Another tax demand of ₹147.5 crore for the period between July 2017 to October 2022.

Together, these notices accumulate to ₹6,384.3 crore. Notably, these notices require Deltatech Gaming Limited to pay the alleged tax shortfall, coupled with interest and penalties. Furthermore, they suggest that the CEO & Executive Director of Deltatech Gaming Limited may be held liable for penalties under specific sections of the Central Goods and Services Tax (CGST) Act, 2017.

 

 

 

Industry-Wide Concerns

A fundamental issue underlying this notice is the demand for GST based on the gross bet value of all games played during the relevant period, as opposed to the gross rake amount. This has been a contentious topic in the gaming industry. Delta Corp and other industry stakeholders have made representations to the government regarding this matter, seeking a resolution that aligns with industry practices.

 

Delta Corp's Response

Delta Corp has expressed its reservations regarding the claimed amounts in the notice. The company firmly believes that the demand of GST on the gross bet value, rather than the gross rake amount, is problematic. They have conveyed their concerns to the government, emphasizing the need for a resolution that is in harmony with industry norms.

 

Comparing with Previous Notices

The latest ₹6,384 crore notice follows a previous one received on September 25, 2023. In that notice, Delta Corp was confronted with a tax shortfall of ₹11,140 crore. Additionally, three of its subsidiaries were issued notices amounting to ₹5,682 crore. These earlier notices pertained to the period between July 2017 and March 2022, setting the stage for ongoing tax-related challenges.

 

Financial Implications

This significant shortfall notice could have substantial financial implications for Delta Corp. It's essential to monitor how these tax-related challenges may impact the company's operations, financial health, and growth strategies.

 

FAQS

1. What is the latest issue involving Delta Corp and the GST shortfall notice?

• Delta Corp, a prominent casino and gaming company, has recently received a GST shortfall notice for ₹6,384 crore. This comes as an addition to the earlier notice of ₹11,140 crore received in September 2023.

2. When were these fresh GST shortfall notices received by Delta Corp?

• The latest notices were received by Deltatech Gaming Ltd, a subsidiary of Delta Corp, on October 13, 2023.

3. What is the breakdown of the ₹6,384 crore GST shortfall notice?

• The notice comprises two key components:
  • The first notice demands ₹6,236.8 crore in taxes for the period from January 2018 to November 2022.
  • The second notice seeks ₹147.5 crore in taxes for the period spanning July 2017 to October 2022. Combined, these amounts to ₹6,384.3 crore.

4. What are the obligations imposed by these notices on Deltatech Gaming Limited?

• These notices require Deltatech Gaming Limited to pay the alleged tax shortfalls along with associated interest and penalties. Additionally, they suggest that the CEO & Executive Director of Deltatech Gaming Limited may be liable for penalties under specific sections of the Central Goods and Services Tax (CGST) Act, 2017.

5. Why is there a discrepancy in the calculation of GST in this case?

• The issue at hand revolves around the calculation of GST based on the gross bet value of all games played during the relevant period, rather than the gross rake amount. This difference in calculation method has been a matter of contention within the gaming industry.

6. Has Delta Corp raised its concerns regarding the GST calculation method?

• Yes, Delta Corp has expressed its disagreement with the claimed amounts in the notice. The company believes that the demand for GST on the gross bet value is problematic. They have made representations to the government, seeking a resolution that aligns with industry norms.

7. How do these latest notices compare to the previous GST shortfall notice received by Delta Corp?

• The earlier notice, received on September 25, 2023, was for a tax shortfall of ₹11,140 crore. It also included notices for three of Delta Corp's subsidiaries totaling ₹5,682 crore. These earlier notices pertained to the period between July 2017 and March 2022.

8. What are the potential financial implications of these GST shortfall notices for Delta Corp?

• The significant tax shortfall notices could have substantial financial implications for Delta Corp. It's important to monitor how these challenges might impact the company's operations, financial health, and growth strategies.

9. What is the general outlook for resolving this GST calculation issue in the gaming industry?

• The industry-government dialogues are expected to play a crucial role in finding a resolution to the GST calculation issue. The outcome of these discussions is eagerly awaited, as it could impact not only Delta Corp but also the broader gaming and entertainment industry in India.

10. How can I stay updated on further developments related to this issue?

• To remain informed about the unfolding situation and gain deeper insights, it's advisable to follow reliable news sources and resources that continue to cover this ongoing development. The situation's outcome could have far-reaching consequences within the industry.

 

Conclusion

Delta Corp's latest GST shortfall notice of ₹6,384 crore adds to the ongoing challenges faced by the company in the tax domain. The disagreement over the calculation method and the industry's concerns remain key aspects to watch in the coming days. Industry-government dialogues and a resolution to the GST calculation issue are eagerly awaited.

 

Stay Informed

For more updates on this unfolding situation and to gain deeper insights into the matter, stay tuned to reliable news sources and resources that continue to cover this ongoing development. The outcome of this situation could have far-reaching consequences, not only for Delta Corp but also for the broader gaming and entertainment industry in India.