Delta Corp and its subsidiary Highstreet Cruises and Entertainment have received new GST notices from Goa totaling ₹1,752.38 crore for the 2022-23 financial year. The company disclosed the demand in a March 18 filing and said it includes tax, interest, and penalties.
The notices keep alive a tax dispute that has already been running for years. Delta said similar notices for earlier periods are already under challenge, with the Supreme Court having stayed further proceedings in those cases while the larger issue is being decided.
Why the new tax demand matters
The latest notices cover ₹1,350.25 crore for Delta Corp and ₹402.12 crore for Highstreet Cruises and Entertainment. This represents a significant financial exposure for a listed gaming company, even if the demand is still under legal challenge.
More importantly, this is no longer limited to historical claims. Delta continues to receive new notices while the broader legal dispute remains unresolved, extending uncertainty for the business.
The real issue is how tax should be calculated
At the center of the dispute is a key question with major financial consequences: what amount should GST be applied to? Goa’s tax authorities are calculating tax based on the total value of bets placed at Delta’s casinos during the year.
Delta disputes this approach. The company argues that tax should be calculated on actual gaming revenue rather than total wagers. The difference between these two methods can significantly change the final tax liability. Similar debates have also appeared in other markets, including Brazil’s betting tax changes and their impact on operators.
Delta plans to challenge the notices
The company said it has been advised that the new demands are arbitrary and not in line with legal principles. It confirmed that both entities will pursue all available legal options to challenge the notices.
This means the latest development does not resolve the dispute. Instead, it adds another layer to an ongoing legal battle affecting India’s casino sector.
The dispute remains unresolved
The broader issue of how casino gaming should be taxed in India is still awaiting a final legal decision. Until the courts provide clarity, Delta Corp is likely to remain involved in continued litigation and regulatory uncertainty.
