Deltatech has received notices from the Directorate General of GST Intelligence, Hyderabad, demanding payment of alleged tax shortfalls for Rs 6,236.81 crore for the period from January 2018 to November 2022 and Rs 147.51 crore for the period from July 2017 to October 2022.

Earlier, on 22 September, the gaming company had received notices from the Directorate General of GST Intelligence, Hyderabad, demanding payment of shortfall tax, interest, and penalty totaling Rs 16,822.96 crore.

“The notice advises Deltatech Gaming 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 stated in a regulatory filing.

The gaming company added, “The notice also states that the CEO & executive director of Deltatech Gaming, being in charge of its day to day affairs, is liable for a penalty under Section 122(3)(a) of the CGST Act, 2017 read with the West Bengal GST Act, 2017.”

With this recent tax notification, Delta Corp's cumulative tax shortfall has now reached a sum of around Rs 23,206 crore, which is more than six times higher than its overall market capitalisation of Rs 3,399.35 crore.

The company further stated that the amounts claimed are based on the gross bet value of all games played during the relevant period. 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.

The company and its subsidiary lastly added that it has been legally advised that the 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.

Meanwhile, the gaming and casino company declared its quarterly results ended 30 September 2023 on 11 October 2023.

The firms' consolidated net profit grew 1.74% to Rs 69.44 crore in Q2 FY24 as compared to Rs 68.25 crore in Q2 FY23. Net revenue rose marginally to Rs 270.59 crore during the quarter as against Rs 269.97 crore posted in the same quarter last year.

The company's income from casino gaming division was at Rs 283.07 crore (up 3.44% YoY), online skill gaming division was at Rs 42.54 crore (down 13.9% YoY) and hospitality division stood at Rs 9.95 crore (down 8.21%), during the period under review.

Delta Corp is the only listed company engaged in the casino (live, electronic and online) gaming industry in India. The company is engaged in diversified segments like casino gaming, online gaming, hospitality and real estate.