Delta Corp Shares Reach 52-Week Low On Receiving GST Notice; Check Details Here

The share price of Delta Corp Ltd slumped 9.04% at Rs 127.35 per share at 11:51 am IST on Monday. The sharp decline in Delta Corp shares was seen after the company informed that its subsidiary Deltatech Gaming Limited, has received an intimation for payment of Rs 6,384 crore owing to tax shortfall tax under Section 74(5) of the CGST Act, 2017 and West Bengal GST Act, 2017, from the Directorate General of GST Intelligence, Kolkata, on October 13, 2023.

At one point, in today's intraday trading, the stock hit a 52-week low of Rs 126 per piece.

The share price of Delta Corp has been under pressure since mid-July 2023. Shares of the Indian casino major experienced a decline after the Indian government decided to levy 28% GST on online gaming, casinos, etc.

Last month, the company received a GST notice for payment of tax amounting to Rs 11,139 crore. The Directorate General of GST Intelligence, Hyderabad, had issued the notice to the company in this regard.
The latest notice takes the total demand from the group to almost over Rs 23,000 crore, higher than the firm's market capitalisation of Rs 3,411.40 crore.

Delta Corp's share price performance:

In the last one year the share price of Delta Corp has fallen 39%, while the stock's year-to-date (YTD) performance is down 40%. In the last six months, Delta Corp Shares have fallen 33%.

Casinos and online gaming companies in India are facing a difficult situation after the GST council's decision to impose a 28% tax on the entire face value of chips bought for playing.

Delta tech Gaming, formerly known as Gaussian Networks, operates prominent gaming apps like Adda52 and Addagames.