Delta Corp Limited has received a GST demand order from the Joint Commissioner, CGST & Central Excise, Siliguri, totaling ₹3.07 crore in differential tax for its Deltin Denzong Casino.

The order, dated October 14, 2026, covers the period from July 2017 to March 2022. It stems from proceedings under the CGST Act, 2017, and the Sikkim GST Act, 2017, regarding shortfalls in tax payments. The company disclosed this development to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Breakdown of GST Demand

The differential GST demand is split into two primary components: valuation of actionable claims and mixed supply issues. The authority determined the taxable value for actionable claims based on directions from the Supreme Court of India, applying Rule 31C of the CGST Rules, 2017.

Regulatory Context and Company Response

The penalty levied under Section 74 of the CGST Act is equivalent to the differential GST demand amount for both components. Additionally, interest under Section 50 of the CGST Act has been applied at the notified rate from the day succeeding the due date of the return for each tax period until payment.

This order follows earlier disclosures by Delta Corp regarding notices received for the same period and the Supreme Court’s decision on the matter. The company stated it is evaluating the order and may take appropriate steps, including filing an appeal within prescribed legal timelines.

What the Numbers Show

The total financial exposure extends beyond the ₹3.07 crore principal tax demand. Since the penalty equals the tax amount, the immediate liability doubles to approximately ₹6.15 crore before interest accruals. This structure highlights the high cost of non-compliance determinations where penalties are pegged directly to the disputed tax value.

Delta Corp Limited and its subsidiaries have received GST demand orders totaling ₹116.43 crore from the Additional Commissioner, Central GST, Goa Commissionerate. The orders, dated September 25, 2026, cover the period from July 2017 to March 2022.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The demand arises from differential tax payments related to actionable claims and mixed supplies in casino operations. The company stated it is evaluating the orders and may file appeals within prescribed timelines.

Breakdown of GST Demand

The total demand comprises differential GST, interest, and penalties across Delta Corp and its subsidiaries, Hightstreet Cruises and Entertainment Private Limited (HCEPL) and Delta Pleasure Cruise Company Private Limited (DPCCPL).

The Authority levied interest at 18% per annum on the differential GST amounts for actionable claims from October 1, 2023, until payment. For mixed supply demands, interest is levied at 18% per annum from the due date until payment.

Valuation and Tax Rates Applied

For actionable claims, the GST differential was calculated based on the value of chips sold, following Supreme Court directions. The tax rate applied was 18% for July 1, 2017, to January 24, 2018, and 28% for January 25, 2018, to March 31, 2022, under Rule 31C of the CGST Rules, 2017.

Regarding mixed supply, the Authority determined that casino entry packages constitute a mixed supply taxable at 28%. A penalty equivalent to the differential GST demand for mixed supply was imposed under Section 74 of the CGST Act.

Pending Proceedings in Sikkim

Delta Corp noted that proceedings related to notices for its Sikkim casino for the same period (July 2017 to March 2022) remain pending. The company will make further disclosures upon completion of those proceedings.

What the Numbers Show

The penalty imposed equals the entire differential GST demand for mixed supplies (₹37.11 crore), effectively doubling the liability for this specific component. This indicates a strict interpretation of tax evasion provisions under Section 74, where the penalty mirrors the tax shortfall. The total financial exposure of ₹116.43 crore represents a significant one-time charge against past earnings, though the final impact depends on the outcome of potential appeals.