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Delta Corp’s Sharpest Single-Day Move Since 2017

02 July 20244 mins read by Angel One
GST Council will discuss recommendations on June 22. If approved, it would allow authorities to quash retrospective tax demands, offering relief to the online gaming industry.
Delta Corp’s Sharpest Single-Day Move Since 2017
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On Wednesday, the NSE benchmark Nifty50 achieved a fresh all-time high. Similarly, Bank Nifty also surpassed its previous high, recording a new all-time high after a span of 11 trading sessions. Despite this positive momentum, profit booking became evident as the Nifty50 index slipped from its highs, and broader markets were seen trading in the red.

Delta Corp Ltd Surges Amidst Market Profit Booking

Amidst the profit booking environment, one stock stood out: Delta Corp Ltd. The shares of Delta Corp recorded their sharpest single-day move since 2017, surging over 16% on Wednesday and reaching a fresh 4-month high. Volumes recorded on NSE were the highest in almost 9 months, with a total traded volume of 4.01 crore shares.

Why Is Delta Corp Buzzing?

About Delta Corp

Founded in 1990 as a textiles and real estate consultancy, Delta Corp has diversified into various sectors, including casino gaming, online gaming, hospitality, and real estate. Leveraging its early-mover advantage, the company has established itself as a leader in India’s organized gaming and entertainment industry.

Impact of GST on Delta Corp

Last year, Delta Corp’s stock plummeted after the GST Council decided to levy a 28 percent GST on online gaming, horse racing, and casinos, sparking outrage in the online gaming industry. However, there has been a recent development that could potentially resolve this issue. The Goods and Services Tax (GST) Council, at its meeting on June 22, is expected to take up a key amendment addressing retrospective taxation for online gaming companies.

Proposed GST Amendment

The law committee has suggested a proposal to address tax notices issued where lower taxes were paid due to interpretation issues or lack of clarity in the law. The proposal recommends incorporating a provision in GST laws empowering the central and state governments to regularize, based on the GST Council’s recommendations, non-levy or short levy of GST or Compensation Cess where such non-levy or short levy was due to general practice in the trade. Additionally, the law committee recommends that no refund of GST or Compensation Cess should be allowed on account of any notification issued in this regard.

Potential Relief for the Online Gaming Industry

The GST Council will deliberate on this recommendation at its upcoming meeting on June 22.If approved, this amendment would allow authorities to nullify retroactive tax demands, providing substantial relief to the online gaming industry.

Delta Corp’s surge amidst market profit booking highlights its resilience and the potential positive impact of the proposed GST amendment on its operations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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