The Directorate General of GST Intelligence has asked India's largest casino chain Delta Corp to pay an alleged liability of Rs 11,139 crore. Delta Corp received an intimation for payment of shortfall tax under Section 74(5) of the CGST Act, 2017 and Goa SGST Act, 2017 from the Directorate General of GST Intelligence, Hyderabad, on Friday.

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The DG notice advises the company to pay an alleged tax liability of Rs 11,139 crore along with interest and penalty for the period from July 2017 to March 2022, failing which a show-cause notice will be issued to the company under Section 74(1) of the CGST Act, 2017 and Goa SGST Act, 2017.

“The amount claimed in the DG notice is inter alia based on the gross bet value of all games played at the casinos during the relevant period. 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 Corp said.

“The company has been legally advised that the DG notice and the tax demand is arbitrary and contrary to law, and the company will pursue all legal remedies available to it to challenge such tax demand and related proceedings," it added.

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