DELTACORP · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Delta Corp Ltd received a favorable ruling from the Hon'ble Supreme Court regarding show cause notices for alleged short payment of Goods and Services Tax (GST). The Supreme Court upheld the company's revenue computation methodology (used since October 2023) to apply retrospectively for the period July 2017 to September 2023. Under this method, GST is calculated on the amount received from players for chip sales rather than the gross bet value of all games played, which had notionally multiplied the revenue and GST payable. The company expects this to reduce their retrospective GST liability significantly. A copy of the full order is yet to be received.
This favorable Supreme Court ruling removes a significant GST liability risk and is positive for the company's financial health. It reduces uncertainty around retrospective tax claims and could improve cash flows once quantified. However, the actual financial impact will depend on the difference between the tax already paid and what would have been due under the new calculation.