3 weeks before, Delta Corp received a tax notice of Rs 11,140 crore. Now Delta Corp has received another GST tax notice of Rs 6,384 crore.
These tax notices are huge as compared to the company’s market cap of Rs 3,749 crore. I believe that these tax notices are enough for the destruction of the company.
Currently, Delta Corp closed at Rs 140 on Friday, which is almost 1 per cent down from the Thursday’s close.
The company informed about the tax notice in a regulatory filing. The company said that the amounts claimed in the notice are inter alia based on the gross bet value of all games played during the relevant period. Demand of GST on gross bet value, rather than gross rake amount, has been an industry issue and various representations have already been made to the Government at an industry level in relation to this issue.
The notice also mentioned that the CEO & Executive Director of Deltatech Gaming Limited will be liable for ”penalty under Section 122(3)(a) of the CGST Act, 2017 read with the West Bengal GST Act, 2017”.
As I mentioned, the company received a similar tax notice of $1.34 billion on 22nd September for the period of July 2017 to March 2022.
I remembered, the stock went down like 15 per cent after the previous tax notice in the trading session.
The casino stocks are already under stress after the new 28 per cent GST rule.
We will have to see how will this stock react in the Monday’s trading session. The share price of Delta Corp is already down considerably.
Don’t catch the falling knife they say. I will wait and watch till it bleeds to its core.
I am interested in Gambling stocks but they are having a tough time nowadays. Let’s see.