The 28% GST announced by the Council will be applicable
on the entry-level and not the winnings, clarified
Sitharaman. She further added the Council will go ahead
with its decision to levy the GST on face value.
"The Council’s decision to levy GST on deposits made at
entry level has brought a sigh of relief for the sector.
It has recommended parity in treatment for casinos and
online games of skill. With the said amendment, the
valuation mechanism for Casino and Online gaming are
kept at par i.e., GST will be charged only on the value
of coins purchased and money deposited in the wallet
respectively, rather than levying GST on each game
played. This is a welcome clarification for the industry
stakeholders," said L. Badri Narayanan, Executive
Partner, Lakshmikumaran & Sridharan Attorneys.
Subsequently, the Law Committee, comprising Centre and
state tax officers, had prepared draft rules for
consideration by the GST Council with regard to the
computation of supply value for tax purposes.
With respect to casinos, the committee had proposed that
the supply value should be the amount paid by a player
for the purchase of tokens, chips, coins or tickets.
At 10.03 am, the scrip was trading 4.8% lower at Rs
187.6 on BSE. On a year-to-date basis, the stock has
declined 13%, while it has plunged over 25% in the last
one month.
In Q1 FY24, Delta Corp reported a net profit of Rs 67.9
crore, an 18.9% YoY rise compared to Rs 57 crore in Q1
FY23. Its revenue increased by 9% to Rs 272.8 crore in
FY23 compared to Rs 250.3 crore in FY22. While the
EBITDA was up 9.5% at Rs 95.8 crore.
Source::: THE ECONOMIC TIMES ,
dated 03/08/2023.