In a stunning turn of events, leading casino operator Delta Corp has been slapped with a hefty tax notice amounting to a staggering Rs 16,822 crore by the Directorate General of GST Intelligence. The tax demand pertains to the period spanning from July 2017 to March 2022, sending shockwaves through the industry.
Delta Corp and Its Subsidiaries in the Crosshairs
The colossal tax demand has been divided into two parts, with the lion’s share, a staggering Rs 11,140 crore, directly imposed on Delta Corp itself. Additionally, three of its subsidiaries—Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises—have been collectively issued a notice for Rs 5,682 crore. This monumental tax claim has set off alarm bells within the company.
The GST vs. GGR Debate
Delta Corp has come forward, expressing its bewilderment at the tax demand, citing that it is grounded in the concept of gross bet value rather than the more conventional gross gaming revenue (GGR). This distinction lies at the core of the issue that has brewed contention within the industry for some time.
The crucial difference between gross bet value and gross gaming revenue lies in the method of calculating taxes. Gross bet value includes the total sum wagered by players, whereas gross gaming revenue accounts for the amount retained by the casino after payouts. The discrepancy in taxation methodologies has led to uncertainty and dispute in the industry.
A Widespread Predicament
Delta Corp has made it clear that this is not an isolated issue but rather a challenge that the entire industry is grappling with. Various representations have already been made to the government on behalf of the industry, urging it to address this pressing concern.
Delta Corp’s Resolve to Fight Back
Undeterred by the colossal tax demand, Delta Corp has sought legal counsel and has been advised that the notice and accompanying tax demand are arbitrary and in violation of established laws. With a steadfast commitment to defending its rights, Delta Corp has announced its intention to exhaust all available legal remedies to challenge the tax demand and associated proceedings.
This development marks a critical juncture for Delta Corp and the casino industry as a whole. The outcome of this legal battle will not only have significant ramifications for Delta Corp and its subsidiaries but could also set a precedent for how taxation in the casino industry is calculated and enforced.
As this high-stakes battle unfolds, the casino industry will be watching closely, hoping for a resolution that provides clarity and fairness in the realm of taxation.