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 been made any provisions towards the same.
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, Kolkatta.
Delta Corp said the demands made by the authorities on the gross bet value/ gross face value as against gross gaming revenue / gross rake amount hass been an industry issue and multiple representations have been made by the industry participants to the government in this regard.
“Holding company/ subsidiary companies have filed writ petitions and have obtained stay orders from respective High Courts. Without prejudice, the holding company and its three subsidiaries, based on legal assessment, are of the view that all the above notices and the tax demands are arbritrary in nature and contrary to the provision of law.”, Delta Corp said in regulatry filing.
Read more at: ETCFO.COM
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