The Directorate General of GST Intelligence, Kolkata, has issued a goods and service tax (GST) shortfall notice worth Rs 6,384 crore to the casino operator Delta Corp's subsidiary Deltatech Gaming Ltd, the firm announced in a stock exchange filing on Saturday.
According to the statement, Deltatech received notices of tax payment shortfalls totalling Rs 6,237 crore for the period of January 2018 to November 2022 and Rs 148 crore for the period of July 2017 to October 2022.
If the payment plus interest and penalty is not cleared, officials will give the company a show-cause notice.
"The amounts claimed in the abovementioned notice are inter alia based on the gross bet value of all games played during the relevant period. The 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," Delta Corp said in its statement.
According to the notice, Deltatech Gaming's CEO is obligated to pay the fine under the law.
"The Company and its subsidiary have been legally advised that the above notice and the tax demands are arbitrary and contrary to law, and the Company and its subsidiary will pursue all legal remedies available to them to challenge such tax demands and related proceedings," it said.
Delta Corp was given a notice to pay Rs. 11,140 crore in back taxes earlier in September. Intimations of an additional tax shortfall totalling Rs 5,683 have been sent to Delta Corp and two of its units for the period from July 2017 to March 2022.
The GST Council has determined that gambling companies' revenue will be subject to an indirect tax of 28%.
(with inputs from agencies)
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