Delta Corp up 14% on retrospective GST respite hope | News on Markets

Shares of online gaming companies, Delta Corp in particular, were in limelight in Wednesday’s intra-day trade on hopes of reprieve from on retrospective taxes.

According to a Business Standard report, the Goods and Services Tax (GST) Council, at its meeting on Saturday, is expected to take up a key amendment that has the potential to resolve the vexatious issue of retrospective taxation for online gaming companies.

According to officials familiar with the development, this amendment to the central GST (CGST) Act, if implemented, will give both the Centre and states the power to waive GST dues that have not been paid due to legal ambiguity or on account of “general practices” consistently followed by businesses.

The proposed amendment, if implemented, may provide relief to online gaming companies facing Rs 1.12 trillion in tax demands through over 70 notices. READ MORE

Delta Corp zoomed to a high of Rs 151.25 – up 14.5 per cent from its previous close. At 10:40 AM, the stock was trading with a gain of 12.8 per cent on the back of over two-fold jump in trading volumes. The counter has seen trades of around 10.11 lakh equity shares on the BSE as against the two-week average volume of around 4.63 lakh shares.

On 04 June 2024, Delta Corp had hit its 52-week low of Rs 104.30. With today’s gain the stock is up 45 per cent from its 52-week low. 

As per reports, Delta Corp has faced multiple GST notices between September and October 2023, with tax demand up to $1.34 billion including interest and penalty. READ MORE

Meanwhile, shares of Nazara Technologies, another player from the online gaming industry, jumped 3.87 per cent to hit a high of Rs 905. Nazara Technologies stock, thereafter, pared gains and was up 0.5 per cent at Rs 876. The counter has seen volumes of around 46,000 shares as against the two-week average volume of around 90,000 shares on the BSE.

First Published: Jun 19 2024 | 10:51 AM IST

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