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Delta corp shares rocketed up over 7 per cent on NSE (National Stock Exchange), after Supreme Court agreed to hear online gaming indutries' plea over GST show cause notice on January 10.
The shares of Delta Corp went on to touch the day high level of Rs 117.70 per share on the Indian exchanges after hitting the opening bell at Rs 110.80 per share on the bourses.
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Delta corp shares were trading around Rs 114.14 per share with an upsurge of 4.12 per cent amounting to Rs 4.52 per share on the Indian exchanges.
Gaming has voiced their concerns
Concerned about possible coercive action by tax authorities, the industry is requesting a stay on show cause notices, according to CNBC-TV18. According to CNBC-TV 18, the industry has voiced concerns, stating that the matter has been unresolved for a number of years.
In 2022–2023 and the first seven months of 2023–2024, 71 show-cause notices involving the evasion of Goods and Services Tax (GST) totaling Rs 1.12 lakh crore were sent to online gaming companies.
Gaming industry is demanding GST on gross gaming revenue
The payment of 28 per cent GST rather than 18 per cent for the period ending October 1, 2023, has caused problems for online gaming companies.
Although the companies contend that the 28 per cent tax will only be imposed as of October 1, the government believes that the October 1 revision merely clarified an existing law. The government maintains that the demand for tax obligations is not retroactive.
GST council announced 28 per cent GST
The GST Council clarified in August 2023 that starting on October 1, all online games that involve wagers, regardless of skill or chance, would be subject to a 28 percent GST rate on the total amount wagered, not on the gross gaming revenue.
