Delta Corp shares plummet 20% after hefty GST notice
Casino operator Delta Corp Ltd. has seen its shares drop by 20% after receiving tax notices totaling Rs. 16,822 crore from the Directorate General of GST Intelligence. The company argues that the GST demand is based on gross bet value rather than gross gaming value and intends to challenge the order through legal means. This comes after Delta Corp lost significant market capitalization in July due to revised GST rates on casinos and online gaming.
The company's shares are at their lowest in 33 months
The first tax notice, amounting to Rs. 11,140 crore, has been raised directly against Delta Corp, while the second notice for Rs. 5,682 crore, targets three of its subsidiaries, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises. The demand covers the period between July 2017 and March 2022. Following today's sharp decline, the company's stocks are at their lowest in 33 months.
Shares fell 23% in a single day in July
Delta Corp's recent GST notice is not an isolated incident but reflects a broader issue within the casino industry. In July, the company's market capitalization fell drastically after the GST council increased casino tax rates from 18% to 28%. The stock declined by 23% in a single day. That resulted in the company's market capitalization dropping Rs. 1,500 crore, higher than its 2023 financial year revenue of Rs. 1,021 crore.
