• Notification Date: 05-08-2023
  • Notification No: N/A

Delta Corp cracks over 8% on GST Council Decision, Erodes 10% in 3 Days

Shares of the casino operator Delta Corp (NS:DELT) tanked 8.11% on Thursday and hit an intraday low of Rs 181.1 apiece during the session, extending its tumble to the third day in a row. The stock has lost 9.6% in three sessions. 

The gaming and hospitality stock fell today after the GST Council stuck to its earlier recommended decision to levy a hefty 28% tax on online gaming, horse racing, and casinos at full face value. 

The Goods and Services Tax Council on August 2, 2023, retained its decision to charge a 28% tax on the full-face value or entry fees of bets on online real-money gaming, likely to be implemented starting later this year. 

The Chair of the GST Council meeting on Wednesday, Finance Minister Nirmala Sitharaman stated that the aforementioned tax is likely to be put in place from October 1, 2023, following which the Council shall meet again after a period of six months from implementation, for the review of the implementation process. 

Sitharaman clarified that the 28% tax shall be applied to entry-level and not the winnings. 

The finance minister informed that Goa and Sikkim wanted a 28% levy on casino bets to be applied to the gross gaming revenue and not the entire face value, and appealed to the Council for consideration since they were small states. 

GST on online gaming companies shall be imposed being indifferent to whether the games are skill-based or based on chance.