Delta Corp shares in news today as 28% GST on online gaming effective from October
Delta Corp shares are in focus today as 28% GST on online gaming came into effect from October 1. Earlier, online gaming platforms paid 18 percent GST on the platform fees.
- Oct 3, 2023,
- Updated Oct 3, 2023 6:09 PM IST
Shares of Delta Corp Ltd are in focus today (October 3) as 28% Goods and Service Tax (GST) on online gaming came into effect from October 1. Earlier, online gaming platforms paid 18 percent GST on the platform fees.
On July 12, Delta Corp stock ended 23% lower at Rs 189.35 after the GST Council announced a levy of 28 per cent GST on online gaming, horse racing, and casinos. Earlier, online gaming platforms paid 18 percent GST on the platform fees.
Since the GST Council announcement on July 11, the Delta Corp stock has lost 42.17% or Rs 104.1 on BSE. The stock, which closed at Rs 246.80 on July 11 ended at Rs 142.70 on September 29 (previous trading session).
Delta Corp shares ended 1.35% higher at Rs 142.70 on Friday against the previous close of Rs 140.80 on BSE. However, they hit a fresh 52 week low of Rs 133.10 in the previous session. Market cap of Delta Corp rose to Rs 3821.09 crore on BSE. Total 19.46 lakh shares of the firm changed hands amounting to a turnover of Rs 27.01 crore in the previous session.
The gaming and casino stock has lost 26.37 per cent in one year and fallen 33.74 per cent since the beginning of this year. Delta Corp stock has a one-year beta of 1.4, indicating very high volatility during the period.
In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 18, signaling it's trading neither in the oversold nor in the overbought zone. Delta Corp shares are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock declined 19% in the last week after the company received tax notices totaling Rs 16,822 crore from the Directorate General of GST Intelligence. The demand was for the period between July 2017 and March 2022.
One notice for Rs 11,140 crore was issued against Delta Corp. The other notice for Rs 5,682 crore was raised against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises, the company said in a regulatory filing.
In response to the GST demand, Delta Corp said the GST notice was based on the gross bet value and not gross gaming value. It said it would pursue legal remedies to challenge this order. The company pointed out that such tax demands were not a company-specific problem, but an industry-wide phenomenon.
"The Company and its subsidiaries have been legally advised that all the above notices and the tax demands are arbitrary and contrary to law, and the Company and its subsidiaries will pursue all legal remedies available to them to challenge such tax demands and related proceedings," the company said.
Delta Corp is engaged in the operation of casino. Its segments include real estate, gaming, hospitality and others. The company operates its gaming and hospitality businesses under the DELTIN brand. The company owns three casinos in Goa, including Deltin Royale, Deltin JAQK and Deltin Caravela.
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Shares of Delta Corp Ltd are in focus today (October 3) as 28% Goods and Service Tax (GST) on online gaming came into effect from October 1. Earlier, online gaming platforms paid 18 percent GST on the platform fees.
On July 12, Delta Corp stock ended 23% lower at Rs 189.35 after the GST Council announced a levy of 28 per cent GST on online gaming, horse racing, and casinos. Earlier, online gaming platforms paid 18 percent GST on the platform fees.
Since the GST Council announcement on July 11, the Delta Corp stock has lost 42.17% or Rs 104.1 on BSE. The stock, which closed at Rs 246.80 on July 11 ended at Rs 142.70 on September 29 (previous trading session).
Delta Corp shares ended 1.35% higher at Rs 142.70 on Friday against the previous close of Rs 140.80 on BSE. However, they hit a fresh 52 week low of Rs 133.10 in the previous session. Market cap of Delta Corp rose to Rs 3821.09 crore on BSE. Total 19.46 lakh shares of the firm changed hands amounting to a turnover of Rs 27.01 crore in the previous session.
The gaming and casino stock has lost 26.37 per cent in one year and fallen 33.74 per cent since the beginning of this year. Delta Corp stock has a one-year beta of 1.4, indicating very high volatility during the period.
In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 18, signaling it's trading neither in the oversold nor in the overbought zone. Delta Corp shares are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock declined 19% in the last week after the company received tax notices totaling Rs 16,822 crore from the Directorate General of GST Intelligence. The demand was for the period between July 2017 and March 2022.
One notice for Rs 11,140 crore was issued against Delta Corp. The other notice for Rs 5,682 crore was raised against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises, the company said in a regulatory filing.
In response to the GST demand, Delta Corp said the GST notice was based on the gross bet value and not gross gaming value. It said it would pursue legal remedies to challenge this order. The company pointed out that such tax demands were not a company-specific problem, but an industry-wide phenomenon.
"The Company and its subsidiaries have been legally advised that all the above notices and the tax demands are arbitrary and contrary to law, and the Company and its subsidiaries will pursue all legal remedies available to them to challenge such tax demands and related proceedings," the company said.
Delta Corp is engaged in the operation of casino. Its segments include real estate, gaming, hospitality and others. The company operates its gaming and hospitality businesses under the DELTIN brand. The company owns three casinos in Goa, including Deltin Royale, Deltin JAQK and Deltin Caravela.
Also read: Adani Energy Solutions in focus as Adani group firm commissions Kharghar-Vikhroli transmission line