Delta Corp GST news: Delta Corp share price slumped over 4% on Tuesday's trading session as a result of the introduction of the 28% Goods and Service Tax (GST) for online gaming effective, October 1. Previously, the GST on platform fees for online gaming platforms was 18%. Delta Corp shares closed at ₹136.90, down 4.06%.
Delta Corp GST news: Delta Corp share price slumped over 4% on Tuesday's trading session as a result of the introduction of the 28% Goods and Service Tax (GST) for online gaming effective, October 1. Previously, the GST on platform fees for online gaming platforms was 18%. Delta Corp shares closed at ₹136.90, down 4.06%.
As per PTI news report, the finance ministry said late on Friday that the updated provisions in the Central GST and Integrated GST regulations would take effect on October 1.
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The Central GST Act has been updated, and as a result, online gaming, casinos, and horse racing are now considered "actionable claims" that are subject to the same 28% Goods and Services Tax (GST) as lotteries, betting, and gambling.
The Integrated GST (IGST) Act modifications make it necessary for offshore online gambling platforms to register in India and to comply with domestic law by paying 28% tax.
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The GST Council, which consists of the finance ministers of the federal government and the states, adopted changes to the law in its sessions in July and August, adding online gambling, casinos, and horse racing to the list of taxable actionable claims. It also made it clear that these services would be subject to a 28% tax on the total amount bet.
The Central GST and Integrated GST statutes were amended by the Parliament last month in order to implement the Council's decision. On September 6, these companies also received notice of the guidelines for review.
On The technical front, as per trendlyne data, Delta Corp share price fell 28.94% and underperformed its sector by 38.78% in the past year.
According to Ruchit Jain, Lead Research Analyst at 5paisa, the stock has been underperforming because of the recent negative news for the company. As of now, there are no signs of reversal and thus it could continue its downmove. One should avoid any kind of bottom fishing. The resistance for the stock are around ₹150 and ₹162.
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In the last week of September, the company disclosed that it had received a government notification requiring it to pay a tax of ₹16,822 crore for the period spanning July 2017 and March 2022.
A notice for ₹5,682 crore was filed against three of the company's subsidiaries, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, the company stated in an exchange filing. The company received notification to pay an alleged tax liability of ₹11,140 crore, along with interest and penalty, for the period from July 2017 to March 2022, according to another exchange filing. If the company fails to do so, a show-cause notice will be issued to the company.
Also Read: Delta Corp shares slump 15%, touch 52-week low on ₹16,822-crore tax demand