Delta Corp Ltd., a casino and online gaming firms, saw a sharp decline of 9 per cent in its share price, eventually hitting a 52-week low on Monday. The down streak comes after the company received another GST notice worth Rs 6,384.
The most recent notice raises the collective demand from the group well beyond Rs 23,000 crore, which is significantly higher than the company's market capitalization of Rs 3,749 crore.
On a year-to-date basis, the stock prices of Delta Corp have plunged to nearly 40 per cent on both the domestic bourses.
At 11:00 am the stock price was trading at Rs 127 price level, down by nearly 11 points or 8 per cent, on the National Stock Exchange (NSE). The stock touched 52-week low of Rs 122.60.
"The GST notice advises Deltatech Gaming Limited to pay the alleged tax shortfall along with interest and penalty failing which a show cause notice will be issued to the Company under Section 74(1) of the CGST Act, 2017." The company said in its exchange filing.
Last month, Delta Corp had received a direct tax notice totaling Rs 11,140 crore. Three of its subsidiaries, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, were issued a separate notice amounting to Rs 5,682 crore.
Earlier, GST was exclusively applied to the profits generated by the house, without considering the face value of chips. The recent decision by the GST council to impose a 28 per cent tax on the total face value of chips acquired for gambling is posing challenges for both casinos and online gaming firms.