Delta Corp Share Price Declines Five Percent In Early Trade on 28% GST Issue

Delta Corp Share Price Declines Five Percent In Early Trade on 28% GST Issue

Delta Corp share price declined in early trade as the casino operator was again in focus due to 28 percent GST planned by Indian government. Investors are concerned about profitability of Delta Corp in case the government moves ahead with 28 percent GST on casino segment. Many online casino operators and land-based casino companies are concerned about 28 percent GST total revenue. This could lead to lower margins for the sector.

After meeting of GST council, finance minister Nirmala Sitharaman said that 28 percent GST could be applicable from October 1, 2023. The government was urged by casino industry to review its decision. Indian government lacks clear legislation of casino sector. With 28 percent GST, the sector could expect further reforms and casino segment could see better regulation. The tax is high but casino segment getting recognition as a major revenue generating industry, will be good for all the stakeholders.

It is possible that the government could review its decision at a later stage and reduces GST on casino segment.

Sitharaman added that the government will review tax percentage after six months of implementation. The government is expecting to see the impact of 28 percent GST and could review the tax rate.

As per reports, GST Council decided to amend central and state laws from 1 October to ensure that 28% GST is paid on the full value of amounts deposited by players for betting on online games, casinos, and horse races. There will be income tax on winnings. The amount reinvested in gaming, will not be subject to GST. The GST Council also decided to amend the Integrated GST Act to require registration of offshore gaming platforms serving Indian consumers and to collect GST from them. This will result in a level playing field for offshore operators as well. For the moment, companies operating online casinos for Indian consumers, were headquartered outside India and were able to escape the tax compliance.

Delta Corp stock has been among top performers but the 28 percent GST news has taken steam out of this counter. When the government announced the move, the stock witnessed 27 percent decline in single trading session.

Business News: 
Technology Update: