Delta Corp, an Indian gaming operator, has been granted a temporary stay in its Goods and Services Tax (GST) bill of $76 million by the Sikkim High Court, Inside Asian Gaming reported October 23.
Sikkim is one of the northernmost Indian states. The Directorate General of GST Intelligence, Hyderabad has demanded payment on the tax bill on back taxes the company allegedly owes for operations of its Casino Deltin Denzong, in Sikkim.
According to Delta, “the Honorable High Court has by its order dated 20th October 2023 ordered status quo to be maintained in respect of the demand until the date of next hearing.”
This demand for back taxes is one of several agencies in several states that total $2.8 billion, which is about eight times the company’s total market cap.
The demands cover the period from July 1, 2017 to March 31, 2022.
Delta has said that the tax demands are huge, as they are “based on the gross bet value of all games played at the casinos during the relevant period.”
It continued, “Demand of GST on gross bet value, rather than gross gaming revenue, has been an industry issue and various representations have already been made to the Government at an industry level in relation to this issue.”
Delta is arguing that the tax demands are arbitrary and contravene Indian law, and it says it will challenge them.
Delta operates two floating casinos and a floating hotel with a casino, all three in Goa; two casinos in Sikkim, a five-star hotel in Daman and a new luxury land-based casino in South Goa.
