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Delta Corp Shares Surge 11.34% Amid Tax Relief Speculation

The online gaming industry has been advocating for taxes to be calculated on Gross Gaming Revenue (GGR) rather than the full face value of the deposit made. Delta Corp shares soared after a news report suggested the GST Council might amend the CGST Act to eliminate retrospective tax demands, a move the gaming industry has been pushing for.

By 1 PM, Delta Corp shares had surged over 12%, and Nazara Tech also saw an early spike in share price. Over the past month, Delta Corp shares have risen by 23%, while Nazara’s shares are up by 40%.

The CGST Act includes provisions for notices in cases where e-gaming entities paid lower taxes due to unclear or misinterpreted regulations. The GST Council is expected to discuss a recommendation to amend the Act at its upcoming meeting on 22nd June according to The Economic Times.

NEGATIVE NEWS FOR DELTA CORP

COUNCIL UNLIKELY TO REVIEW 28% GST ON ONLINE GAMING: MONEYCONTROL#BREAKING

— RedboxGlobal India (@REDBOXINDIA) June 19, 2024

In April, Prime Minister Modi stated that the government does not favor over-regulating the gaming industry and emphasized the need for a system to address its challenges.

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ALSO READ: Mahadev App Scam: Accused Firm Had Ties With Delta Corp 

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A group of 30 petitions by online real money gaming companies challenging retrospective GST notices, which demand thousands of crores at 28% on the face value of bets, is currently pending before the Supreme Court.

#DeltaCorp shares at over five-month high. #NDTVProfitStocks

Read latest #stockmarket updates: https://t.co/5iAdiXMz2Q pic.twitter.com/uN6Nw3q12L

— NDTV Profit (@NDTVProfitIndia) June 19, 2024

The online gaming industry plans to approach the new government after the general elections to request a reduction in the Goods and Services Tax (GST). They propose that the tax be based on Gross Gaming Revenue (GGR) instead of the full face value. Industry insiders, who requested anonymity, believe the current high tax rate is unsustainable for startups in the sector.

Since October 2023, GST on online gaming has been levied on the full face value of deposits instead of GGR. Gross gaming revenue (GGR) is the difference between the amount wagered and the amount won. As a result, revenue from online gaming has increased five to six times, from ₹200 crore to ₹1,100 Crore per month.

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