Delta Corp Shares Surge 15% On Hopes Of GST Council Waiving Retrospective Tax Demand

Shares of online gaming company Delta Corporation gained on Wednesday after reports claimed that the GST council might waive off retrospective tax demands.

What Happened: The law committee under the GST council has suggested an amendment to the CGST Act to nullify retrospective tax demands, reported the Economic Times. This move is seen as a response to the gaming industry’s appeal for a more favourable tax regime.

See Also: Ixigo’s Dream Listing Continues As Shares Surge 13% And Nomura Buys ₹103 Cr Stake

The GST Council is likely to discuss a recommendation to amend the Act in its upcoming meeting on June 22, as stated by The Economic Times. This amendment could potentially resolve instances where e-gaming entities paid lower taxes due to ambiguity or interpretation issues related to the law.

Currently, the Supreme Court is considering 30 petitions by online real money gaming companies challenging retrospective GST notices seeking thousands of crores in dues calculated at 28% of the face value of bets.

The online gaming industry has expressed intentions to approach the new government post-general elections, seeking a reduction in Goods and Services Tax (GST). They propose that the tax be computed on the Gross Gaming Revenue (GGR) instead of the full face value.

The Directorate General of Goods and Services Tax Intelligence (DGGI) found 6,323 cases in the financial year 2023-24 involving tax evasion of ₹1.98 lakh crore. Among these, online gaming companies had the maximum number of tax evasion notices over ₹1 lakh crore.

Price Action: Shares of Delta Corp rose 15.47% to ₹152.71 on Wednesday’s trading session.

Read Next: Here’s What Brokerages Think About Zomato’s Talks To Buy Paytm’s Ticketing Business As Shares Jump 5%

Engineered by Benzinga Neuro, Edited by Ananthu CU

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesGovernmentNewsMarketsMoversDelta Corp