Casino chain Delta Corp on October 14 informed the stock exchanges that its subsidiary Deltatech Gaming has received an intimation for payment of shortfall tax to the tune of Rs 6,384 crore.
Deltatech Gaming, formerly known as Gaussian Networks, runs gaming apps like Adda52 and Addagames.
"The GST notice advises Deltatech Gaming Limited to pay the alleged tax shortfall along with interest and penalty failing which a show cause notice will be issued to the Company under Section 74(1) of the CGST Act, 2017," the company said in the exchange filing.
With this recent tax notice, Delta Corp's total tax shortfall liability now stands at Rs 23,206 crore. In comparison, Delta Corp's market capitalisation is Rs 3,749 crore.
Also Read: Delta Corp: Game over or will the house win as always?
On September 22, it had directly received a tax notice of Rs 11,140 crore. Another notice, for Rs 5,682 crore had been raised against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises.
As per the company, the amounts claimed in all the notices are based on the gross bet value of games played.
"Demand of GST on gross bet value, rather than gross rake amount, has been an industry issue and various representations have already been made to the Government at an industry level in relation to this issue," it has said.
Casinos, online gaming companies are grappling GST council's decision to impose a 28 percent tax on the full face value of chips bought for playing. That means the player gets only Rs 72 to bet for every Rs 100 worth of chips purchased. Earlier, GST was charged only on net house winnings.
On back of this, Delta Corp had earlier announced that it has put the initial public offering (IPO) plan for Deltatech Gaming on hold.
For the quarter ended September, the company reported 1.6 percent year-on-year increase in consolidated net profit at Rs 69.4 crore. The company's revenue rose marginally to Rs 270.6 crore in Q2 FY24 as compared to Rs 270 crore in Q2 FY23.
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