Delta Corp shares sinks to 52-week low over GST notice, stock down 22% in a month

Delta corp shares price fell 8.6% in early trading on October 16, hitting a 52-week low of 128 rupees. Losses widened for the third consecutive day after a subsidiary received a payment notice of Rs 6,384 cr for tax arrears.

As per the latest announcement, the group’s total demand is estimated to be well over Rs 23,000 crore, far exceeding the company’s market capitalization of Rs 3,749 crore. Over the past month, the casino company’s stock has fallen nearly 22%. Deltatech Gaming (formerly Gaussian Networks) operates gaming apps such as Adda52 and Addagames. “The GST Notification directs Delta Tech Gaming Limited to pay the claim of lost tax along with interest and penalties and in default of this, the A show cause notice will be served on the company,” Das said. In the announcement of a stock exchange filing. 

Delta Corp Shares Hit 52-week Low After Receiving Rs 16,823 Tax Shortfall Notice

On September 22, the company received a direct tax assessment of Rs 11,140 crore. Three of its subsidiaries – Casino Deltin Denzon, High Street Cruises and Delta Pleasure Cruises – also received notices of Rs 5,682 cr. The company said the amount charged is based on the total amount bet on the games played. “The GST requirement for gross stakes rather than gross rake amounts is an industry issue and various representations have already been made to the government at industry level on this issue,” it said. Casinos and online gaming companies are facing challenges as the GST Council has decided to impose a 28% tax on the entire face value of chips purchased for gaming.

 This means that for every 100 rupees worth of chips purchased, the player will actually receive only 72 rupees as a wager. Previously, GST was levied only on the net income of a home.

 As of 9:33 am, the stock was trading at Rs 129.20, down 7.71% from the previous day.

 

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