28% GST on online games: Delta Corp's shares tank 20% after receiving tax notice

The shares of online gaming firm Delta Corp tanked 20% in Monday morning trade after the gaming and casino firm said it has received tax notices totalling Rs 16,822 crore from the Directorate General of GST Intelligence.

The company said that the tax demand is for the period between July 2017 and March 2022. The GST money is based on the gross bet value of all the games played at the casinos during the relevant period. The notice further mentioned that a show cause notice will be issued to the company if it fails to pay.

Also Read: Delta Corp, Nazara shares crash after GST council announces 28% GST for online gaming

Following the announcement to the bourses the share price fell to as low as Rs 140.20 on Monday against the previous close of Rs 175.25. This is the second major crash of the company's share in nearly three months.

The company shares crashed on July 12, closing 23% lower after the GST Council imposed a levy of 28 per cent GST on online gaming, horse racing, and casinos.