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Deltatech Gaming Challenges Rs. 6,384 Tax Notice Before Calcutta High Court: Report

Upon receiving the tax notice last month, the online real money gaming company claimed that the notice lacked legal backing.

Online real money gaming company Deltatech Gaming may have moved the Calcutta High Court challenging a Rs. 6,384 crore show-cause notice issued to it by tax authorities, Gateway to Gaming reported. The case has reportedly been listed for November 29th.

MediaNama has reached out to Deltatech Gaming for comments. This piece will be updated if and when they respond.

The notice follows the GST Council’s decision to hike the tax slab for online gaming with wagering from 18% to 28% this year. The Indian government subsequently clarified that the tax hike was not retrospective. 

Upon receiving the notice last month, the Adda 52-parent company offering games like online poker claimed that the notice lacked legal backing. In an exchange filing at the time, the company said: 

“The amount claimed in the DG Notice is inter alia based on the gross bet value of all games played at the casinos during 2017-2022…Demand for GST on gross bet value, rather than gross gaming revenue, has been an industry issue and various representations have already been made to the Government at an industry level in relation to this issue…The company has been legally advised that the tax demand is arbitrary and contrary to law, and the company will pursue all legal remedies available to it to challenge such tax demand and related proceedings.”

A similarly massive Rs. 21,000 crore show cause notice was issued to real money skill gaming major Gameskraft last year. The notice was struck down by the Karnataka High Court earlier this year, after which the GST authorities challenged the verdict at the Supreme Court. The apex court has stayed the Karnataka High Court’s verdict for now, and the case will be heard next on December 15th. 

Dream Sports, another real money gaming major, has reportedly also challenged a large show cause notice (around Rs. 25,000 crore) issued to it before the Bombay High Court. 

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