Delta Corp Zooms On Bourses As GST Relief Comes Around The Corner

Delta Corp Zooms On Bourses As GST Relief Comes Around The Corner

The committee's proposal seeks to resolve tax notices that were sent out in cases where lower taxes were paid as a result of ambiguities in the law or difficulties with interpretation.

Vikrant DurgaleUpdated: Wednesday, June 19, 2024, 12:31 PM IST
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The Central Goods and Services Tax (CGST) Act, 2017 may be amended by the Goods and Services Tax (GST) Council to eliminate the retroactive tax demands from the online gaming industry, which could be a relief to the online gaming industry.

The committee's proposal seeks to resolve tax notices that were sent out in cases where lower taxes were paid as a result of ambiguities in the law or difficulties with interpretation.

A report in the Economic Times states that the law committee has suggested adding a new Section 11A to the CGST Act. This provision would give the government the authority to forgo collecting GST that was either under or not levied at all as a result of commonplace customs.

Delta Corp., one of the largest online gaming and casino operators, received a notice from the Department of GST (Goods & Services Tax) demanding a whopping Rs 23,000 crore as the GST department levied 28 per cent GST on casinos in September and October 2023.

This new development, however, would bring some relief to Delta Corp., as they received notice for a Rs. 23,000 crore tax shohrt fall notice.

The gaming industry has expressed concerns to the government on numerous occasions regarding the demands made by the authorities regarding the gross bet value and gross face value in comparison to the gross gaming revenue and gross rake amount.

The recommendation will be discussed by the GST Council at its next meeting on June 22. Should this amendment be accepted, authorities would be able to reverse tax demands that were made in the past, providing the online gaming industry with a great deal of relief.

The amendment does not, however, deal with the problem of overpaid taxes. Businesses that paid more GST as a result of these practices will not be refunded.

The shares of Delta Corp. zoomed over 15 per cent and were trading at Rs. 152 at 12.15 am.

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