Delta Corp says Rs 23,200 crore-GST demand arbitrary

Online gaming firm Delta Corp on Tuesday said the GST demand worth over Rs 23,200 crore is arbitrary and contrary to provisions of law and hence it has not made any provisions towards the same. The company, which is also a casino operator, reported a 59 per cent year-on-year decline in its consolidated net profit for the quarter ended December 2023 at Rs 34.48 crore. The income from operations stood at Rs 181.54 crore, 18 per cent lower than the year-ago period.

In a footnote alongside its Q3FY24 numbers, Delta Corp said that on September 27, 2023, the holding company and its two subsidiary companies received show cause notices from the Directorate General of GST Intelligence (DGGI), Hyderabad, for alleged short payment of Goods and Services Tax (GST) aggregating to Rs 16,822.9 crore for the period July 1, 2017, to March 31, 2022. On October 28, 2023, another subsidiary of the company received a GST show cause notice aggregating to Rs 6,384.32 crore for the period July 1, 2017, to November 30, 2022, from DGGI, Kolkata.