Delta Corp’s shares jumped 9% following the Supreme Court’s decision to stay the GST show cause notices, which could have resulted in a hefty tax demand of up to ₹1.12 lakh crore against online gaming companies.
This major relief comes after the Directorate General of GST Intelligence (DGGI) raised a tax demand on 71 online gaming firms, with penalties pushing the total amount to a staggering ₹2.3 lakh crore. The notices were issued under the 2023 amendment to the CGST Act, imposing a 28% tax on the “full face value” of entry amounts, applied retrospectively from 2017.
However, the Supreme Court’s ruling ensures that all proceedings under the show cause notice will remain on hold until the case is resolved. This follows a series of legal challenges by gaming companies, including the Karnataka High Court quashing a ₹21,000 crore notice issued to Gameskraft earlier in 2023.
Delta Corp’s stock opened at ₹114.45, reaching a high of ₹131.20 and a low of ₹110.10. The company’s 52-week high is ₹157.90, while the 52-week low stands at ₹104.45.
As of 11:53 AM, the shares were trading 5.90% higher at Rs 119.99.
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