Delta Corp shares tank 13% after two units booked in GST evasion case

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.