Delta Corp, a prominent casino chain in India, has encountered further tax troubles with the Goods and Services Tax (GST) authorities demanding an additional Rs 6,385 crore as tax shortfall from its subsidiary, Deltatech Gaming Limited.
In response to the GST notice, Delta revealed in a filing with the stock exchange that the tax authorities have advised Deltatech Gaming to settle the alleged tax shortfall, inclusive of interest and penalty. Failure to comply may result in the issuance of a show cause notice to the company under Section 74(1) of the CGST Act, 2017.
Deltatech Gaming, formerly known as Gaussian Networks, operates popular gaming apps Adda52 and Addagames.
With this latest tax demand, Delta Corp’s total tax liability has soared to Rs 23,206 crore, a figure exceeding six times the company’s market capitalization, which stands at Rs 3,749 crore.
This development follows a previous notice received on September 22, where Delta Corp was instructed to pay Rs 11,140 crore as GST. Additionally, the company received a separate notice to remit Rs 5,682 crore in taxes from three of its subsidiary companies: Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises.
Delta Corp contends that the GST authorities’ demand is based on the gross bet value, rather than the gross rake amount. This discrepancy reflects a broader industry issue, and the company has made various representations to the Government concerning the matter.
Investors and stakeholders are closely monitoring Delta Corp’s response to these tax demands, as they raise concerns about the company’s financial stability and its ability to navigate this challenging period.