Darshita Jain, Pune
After a 28% GST on online gaming went into effect on October 1st, Delta Corp. Ltd. shares ended the day 4% lower. On October 1 and October 2, the stock market was closed. Compared to the BSE’s previous close of Rs 142.70, the Delta Corp. stock price closed 4% lower at Rs 136.90. Delta Corp.’s market value on the BSE decreased to Rs 3665.79 crore. The stock decreased 4.27% within the day to Rs 136.60 on the BSE. In the previous session, 11.39 lakh shares of the company were traded for a total of Rs 16.02 crore in revenue.
The gaming and casino stock has dropped 32% over the past year and 36.43% since the start of this year. With a one-year beta of 1.4, the stock of Delta Corp. experienced extremely high volatility.
Previously, platforms for online gaming paid GST on platform fees at a rate of 18%. The fee was based on gross gaming revenue, or GGR, rather than the contest entry amount, or CEA, which is the full value of the transaction. These are the costs that online gaming portals impose.
On July 12, after the GST Council levied a 28% GST on online gaming, horse racing, and casinos, the stock fell by 28% intraday. After the GST Council declared a 28% GST levy on online gaming, horse racing, and casinos, the Delta Corp. stock closed 23% lower at Rs 189.35. Previously, platforms for online gaming paid GST on platform fees at a rate of 18%.
After the company received tax notices from the Directorate General of GST Intelligence totalling Rs 16,822 crore, the stock fell 19% in the previous week. The requested time frame was from July 2017 to March 2022.
A single notice was sent to Delta Corp. for Rs. 11,140 crore. According to the company’s regulatory filing, the other notice for Rs 5,682 crore was brought against three of its subsidiaries: Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises.