India’s listed casino operator, Delta Corp Limited, has received new goods and services tax (GST) notices worth ₹1,752.4 crore ($188.5 million) for the financial year 2022-23. The notices, issued by Goa tax authorities, also cover its subsidiary Highstreet Cruises and Entertainment Pvt Ltd and relate to alleged short payment of GST.
The development adds to the ongoing legal and regulatory challenges faced by the casino industry in India, particularly over how GST should be calculated on gaming activities.
Notices issued under GST law
The notices were issued on 17 March, by the Office of the Commissioner of Commercial Taxes, Government of Goa. They fall under Section 74(1) of the Central Goods and Services Tax Act and the Goa GST Act.
According to the company’s filing, the total demand includes ₹1,350 crore ($145 million) attributed to Delta Corp and ₹402 crore ($43.2 million) to its subsidiary. The figures include interest and penalties.
The authorities have alleged that the company underpaid GST during FY22-23. The calculation of the tax demand is based on the estimated gross bet value of all games played during the period.
Dispute over gross bet value vs revenue
The core issue in the dispute is the method used to calculate GST liability. The tax authorities have based their claim on gross bet value, which refers to the total amount wagered by players.
However, Delta Corp has stated that the industry has consistently argued that GST should be levied on gross gaming revenue instead. This refers to the revenue retained by the operator after payouts to players.
The company noted that the difference between these two methods significantly impacts the tax liability. It also stated that the matter has been raised with the government through multiple industry representations.
Company plans legal action
Delta Corp has said it disagrees with the tax demands and considers them arbitrary and contrary to law. The company added that it has obtained legal advice supporting its position.
In its filing, the company confirmed that it will pursue all available legal remedies to challenge the notices and related proceedings. This is expected to include appeals through appropriate judicial forums.
The company did not indicate any immediate financial impact but maintained that it will defend its position in line with existing legal precedents.
Ongoing Supreme Court
The latest notices come against the backdrop of an ongoing legal dispute involving earlier GST demands. Similar tax claims for the period from July 2017 to March 2022 are currently under review.
The Supreme Court of India has already stayed further proceedings in those cases. The final outcome of that matter is expected to provide clarity on the broader issue of GST applicability in the gaming sector.
The current notices for FY22-23 may also be influenced by the eventual ruling in the ongoing case.
Increase in casino licence fee
The Goa government had proposed an increase in casino licensing fees as part of its Budget for 2026-27, aiming to strengthen the state’s non-tax revenue. The proposal had included a 200 percent hike in the fee for establishing new casinos, along with significant increases in annual licence fees, application charges and licence transfer costs. The government had also introduced new regulatory measures to tighten oversight of the sector.
Manila’s calling and it’s not whispering. From 01 to 03 June 2026, SiGMA Asia returns to the undisputed regional heavyweight. With 16,000 delegates, 3,040 operators, and 250+ speakers under one roof, this isn’t just an expo. It’s ignition!
