Delta Corp has received a GST demand order of ₹3.07 crore, including penalties, for its Deltin Denzong Casino from tax authorities in Siliguri. The demand covers differential GST on actionable claims and mixed supply for the period spanning July 2017 to March 2022.
What Happened
Delta Corp Limited received a Goods and Services Tax (GST) demand order dated October 14, 2026, from the Joint Commissioner, CGST & Central Excise, Siliguri, according to scanx.trade. This order mandates the payment of ₹3.07 crore in differential tax for its Deltin Denzong Casino. The notice covers the period from July 2017 to March 2022 and arises from proceedings under the CGST Act, 2017, and the Sikkim GST Act, 2017, related to alleged shortfalls in tax payments.
The total demand comprises ₹1.64 crore for differential GST on actionable claims and ₹1.43 crore for mixed supply. Additionally, penalties equivalent to the total differential GST amount of ₹3.07 crore have been levied under Section 74 of the CGST Act. Interest under Section 50 of the CGST Act will apply to these differential amounts from the respective due dates until payment, as stated by scanx.trade. Delta Corp informed stock exchanges about this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Details
- The GST demand order, issued by the Joint Commissioner, CGST & Central Excise, Siliguri, is dated October 14, 2026 (scanx.trade).
- The demand of ₹3.07 crore includes ₹1.64 crore for differential GST on actionable claims and ₹1.43 crore for mixed supply related to Deltin Denzong Casino (scanx.trade).
- Penalties equivalent to the total differential GST amount (₹3.07 crore) have been imposed under Section 74 of the CGST Act, along with applicable interest under Section 50 (scanx.trade).
- The period covered by this GST demand ranges from July 2017 to March 2022 (scanx.trade).
- The company is evaluating the order and reserves the right to file an appeal within statutory timelines (scanx.trade).
Why It Matters
This GST demand illustrates ongoing regulatory scrutiny regarding the taxation of actionable claims and mixed supplies within the casino industry. The application of Rule 31C of the CGST Rules, 2017, for valuing actionable claims, as directed by the Supreme Court of India, indicates a standardized approach to this aspect of taxation (scanx.trade). The imposition of a penalty equal to the differential GST amount, coupled with interest, underscores the financial consequences of non-compliance determinations in this regulated sector.
Earlier, Delta Corp and its subsidiaries, Hightstreet Cruises and Entertainment Private Limited (HCEPL) and Delta Pleasure Cruise Company Private Limited (DPCCPL), received GST demand orders totaling ₹116.43 crore from the Additional Commissioner, Central GST, Goa Commissionerate, covering the same period (July 2017 to March 2022). These prior demands included ₹79.32 crore for differential GST on actionable claims and ₹37.11 crore for mixed supply, along with corresponding penalties and interest (scanx.trade). The company noted that proceedings related to its Sikkim casino for the same period remain pending.
What’s Next
Delta Corp is evaluating the recent GST demand order for Deltin Denzong Casino and may file an appeal within the prescribed legal timelines (scanx.trade). Further disclosures are anticipated once proceedings related to its Sikkim casino for the period of July 2017 to March 2022 are finalized (scanx.trade).
Originally reported by scanx.tradePublished
Sources & References
Primary source
- scanx.tradescanx.trade
Additional references
- Final GST orders cut Delta Corp’s demand from Rs…xflot.com
- Delta Corp shares zoom 19%, approach 52 week high; here’s why – BusinessTodaybusinesstoday.in
- Delta Corp Ltd, BSE/NSE Announcements | BazaarWatchbazaarwatch.com
- Dear Sir/Madam, Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”). Please note that the Company has received an intimation for payment of shortfall tax under Section 74(5) of the CGST Act, 2017 and Goa SGST Act, 2017, from the Directorate General of GST Intelligence, Hyderabad (“DG Notice”), earlier today. The DG Notice advises the Company to pay an alleged tax liability of INR 1,11,39,61,03,423 (Rupees Eleven Thousand One Hundred and Thirty Nine Crore Sixty One Lakh Three Thousand Four Hundred and Twenty Three) along with interest and penalty for the period from July 2017 to March 2022 , failing which a show cause notice will be issued to the Company under Section 74(1) of the CGST Act, 2017 and Goa SGST Act, 2017. The amount claimed in the DG Notice is inter alia based on the gross bet value of all games played at the casinos during the relevant period. Demand of GST on gross bet value, rather than gross gaming revenue, 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 Company has been legally advised that the DG Notice and the tax demand is arbitrary and contrary to law, and the Company will pursue all legal remedies available to it to challenge such tax demand and related proceedings.archives.nseindia.com