- By Vaamanaa Sethi
- Mon, 25 Sep 2023 12:08 PM (IST)
- Source:JND
Delta Corp shares opened 15% in lower circuit after the company received tax notices totalling to Rs 16,822 crore from the Directorate General of GST Intelligence on Friday. According to reports, this demand is for the period between July 2017 and March 2022.
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The initial notice, totaling Rs 11,140 crore, has been directly issued to Delta Corp. Meanwhile, the second notice, amounting to Rs 5,682 crore, has been raised against three of its subsidiaries: Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises.
In a late-night exchange filing on Friday, Delta Corp has asserted that the GST demand is rooted in the gross bet value, not the gross gaming value. The company intends to take legal actions to contest this order. Furthermore, Delta Corp has highlighted that these tax demands are not unique to the company but rather a widespread issue affecting the entire industry.
It's important to take into account that the stock is presently under the F&O ban, prohibiting the initiation of new positions in the stock.
Delta Corp shares had declined 23% in a single-day in July this year after the GST council revised the GST rates on casinos rising from 18% to 28%. The stock is trading 17.50% lower at Rs 144.70 per share. Delta Corp stock has declined 35% so far this year.
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The decline on July 12th led to the company's market capitalization shrinking by Rs 1,500 crore, surpassing its entire revenue for the fiscal year 2023, which stood at Rs 1,021 crore.
