Delta Corp Limited Anticipates Favorable Supreme Court Ruling on GST Computation

Delta Corp Limited Anticipates Favorable Supreme Court Ruling on GST Computation​

The Supreme Court has issued a pronouncement regarding matters related to show cause notices issued to Delta Corp Limited and its subsidiaries concerning the short payment of goods and services tax (GST). While a copy of the formal order is not yet available, the company confirmed that the pronouncement carries significant financial implications.

Based on the information available, the basis of revenue computation for determining GST, which Delta Corp Limited has adopted since October 2023, is anticipated to be applicable retrospectively for the period spanning July 2017 to September 2023.

This potential ruling is expected to be favorable for the company's tax liabilities. Under the proposed structure, the levy of GST would be calculated not on the gross bet value of all games played during the relevant period. Instead, the GST would be assessed only on the actual amount received from players for the chips sold to them.

This represents a material shift from the previous calculation, which had the effect of notionally multiplying the revenue and consequently inflating the amount payable under GST.

Delta Corp Limited stated that it will provide an update upon the receipt and thorough review of the final order from the Supreme Court.

DELTACORP Stock Price Movement​

On Wednesday, Delta Corp Limited shares edged higher to close at ₹81.05, marking a robust gain of 8.55%. The stock settled on a volume of 30.63 million shares, reflecting strong buying interest throughout the trading session.