Shares of Delta Corp Ltd, a major casino operator, rose nearly 5 percent on September 6, reflecting investor optimism ahead of the GST Council meeting scheduled for September 9. The council is expected to discuss the implications of the newly introduced Section 11A of the GST Act, 2017.
The meeting in Delhi will focus on interpreting this amendment to potentially address retrospective tax issues affecting various sectors, including the real-money gaming (RMG) industry. Section 11A aims to offer protection against punitive retrospective tax demands, which could provide relief to companies facing significant GST-related financial burdens.
Delta Corp, which owns Adda52—a platform offering online games like poker and rummy—stands to benefit from this discussion. The RMG sector is a substantial part of the online gaming industry, holding an 82.8 percent market share in FY23. Industry estimates suggest this segment could contribute between Rs 6,500 crore and Rs 6,800 crore in direct tax revenues and Rs 75,000 crore to Rs 76,000 crore in indirect tax revenue during FY24−28E.
In its June meeting, the GST Council recommended the insertion of Section 11A to address issues related to non-levy or short-levy of GST. The council’s decision is particularly significant for the RMG sector, which has been dealing with substantial retrospective tax demands from July 1, 2017, to March 31, 2023.
The finance ministry had previously issued 71 show cause notices to online gaming companies for alleged GST evasion totaling over Rs 1.12 lakh crore. As of 12:30 pm on September 6, Delta Corp’s shares were trading 6.18 percent higher at ₹139.60, indicating strong market confidence ahead of the council’s meeting.
