Shares of Delta Corp slumped over 13 percent after
CNBC-TV18
reported that two Delta Group units were booked for GST evasion.
Directorate General of Good and Services Tax (GST) Intelligence has
booked two Goa-based Delta group companies -- M/S Delta Corp and
Highstreet Cruises &
Entertainment -- for alleged GST evasion of Rs
6,189 crore, reported
CNBC-TV18.
Delta Corp share price
declined as much as 13.45 percent to Rs 185.10 per share intraday on the
NSE. At 1:26 PM, the stock was trading at Rs 188.45 per share, down
11.92 percent.
Delta Corp
The
two subsidiaries have been accused of GST tax evasion by camouflaging a
mixed supply of services connected to their casinos. Both these
companies paid GST by artificially splitting the value of a single
package. They split the packages into a mix of services and paid at
rates for specific services.
Splitting of this single package for
GST led to lower outgo. Furthermore, GST was only paid on the net
revenue and not on the value of each bet. Hence, the government is in
talks with the company to recover the evaded GST.
Directorate General of GST Intelligence booked a case in March and will now send show cause notices to them.
Delta
Corp is the only listed online- gaming and hospitality company. The
company owns and operates casinos in Goa and Sikkim, and three online
gaming sites.