Shares of Delta Corp surged more than 15% following the Supreme Court’s decision to halt GST notices issued to online gaming companies.Â
Shares of Delta Corp surged by 15.4% to Rs 130.8 in Friday’s trading session on the BSE after the Supreme Court (SC) intervened and halted the proceedings under show cause notices totaling Rs 1.12 lakh crore issued to online gaming companies by the goods and services tax (GST) authorities. This stay will remain in effect until the matter is fully heard and decided upon by the apex court.
The two-judge Bench consisting of Justice JB Pardiwala and Justice R Mahadevan has scheduled further hearings for March, providing a sense of relief for online gaming companies such as Gameskraft, Games 24×7, and others. This means that the GST authorities cannot demand the tax amount from these firms until the final orders are issued by the SC.
Previously, the industry had expressed concerns over the notices issued by the Directorate General of GST Intelligence (DGGI), resulting in a tax demand of Rs 1.12 lakh crore from 71 online gaming companies.
Online gaming firms have been disputing the payment of 28% GST instead of 18% for the period leading up to October 1, 2023. They argue that the 28% tax rate should only apply from October 1, while the government maintains that the revision on October 1 simply clarified an existing law. The government’s position is that the tax dues are not retroactive.
In August 2023, the GST Council amended the law to specify that all online games involving bets, regardless of skill or chance, would be subject to a 28% GST on the full value of the bets placed, starting October 1. This decision has resulted in significant tax demands on online gaming companies, potentially posing a threat to the industry.
Technical indicators for Delta Corp show that the stock’s relative strength index (RSI) is at 46.7. An RSI below 30 is considered oversold, while above 70 indicates overbought conditions.
The stock is currently trading above its 5-day, 10-day, 20-day, 30-day, and 50-day simple moving averages (SMAs), but below its 100-day, 150-day, and 200-day SMAs.
Performance of Delta Corp Shares
Delta Corp shares have experienced a 19% decline over the past six months and a significant 58% drop over the last three years. The company’s market capitalization is currently valued at Rs 3,167 crore.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.