Delta Corp, a company that runs casinos in places like Goa, Sikkim and Nepal, has suffered a major setback. The company has GST outstanding of about Rs 17,000 crore, for which a notice has been sent to it by DGGI. This notice has been sent regarding the outstanding taxes of different time periods.
The Directorate General of GST Intelligence (DGGI) has sent a direct notice of Rs 11,140 crore to Delta Corp. The remaining tax notices of Rs 5,682 crore have been sent to its 3 subsidiary companies. These include Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises.
On what is so much GST imposed?
These GST notices have been given to Delta Corp for the dues of July 2017 and March 2022. In the information given to the stock market, the company said that this GST has been demanded from it on the total amount wagered in gambling and not on the value used for the game. The company will appeal against this order of DGGI. He is preparing to take appropriate legal action.
This calculation is the root of controversy
There is a problem of tax calculation in this whole matter. DGGI is demanding GST on the total bet value generated from casino operations, while the most popular method used for this is to demand tax on the revenue coming from gaming. Anyway, apart from gaming, many other types of services are also provided in casinos.
There has already been controversy regarding this method of tax calculation in the casino industry. Delta Corp also says that this is not a matter related to just one company. Many types of arguments have been put before the government regarding this. However, now this order will be challenged in the court.
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