Mumbai, March 20: The Goa government has issued fresh Goods and Services Tax (GST) demand notices totalling INR 1,752.4 crore to gaming major Delta Corp Ltd and its subsidiary, Highstreet Cruises and Entertainment Pvt Ltd. The notices, issued by the Office of the Commissioner of Commercial Taxes this week, allege a short payment of tax for the financial year 2022-23. In a regulatory filing to the stock exchanges, Delta Corp disclosed that the demand includes the alleged tax shortfall, along with applicable interest and penalties.

The development follows a long-standing dispute between the casino industry and tax authorities over the fundamental calculation of GST.

Breakdown of the Tax Demands by the Goa Government

The total demand is split between two entities under the Delta Corp umbrella:

  • Delta Corp Ltd: Served a notice for INR 1,350.3 crore.

  • Highstreet Cruises and Entertainment Pvt Ltd: The subsidiary, which operates offshore casino vessels in Goa, faces a separate demand of INR 402.1 crore.

The Commissioner of Commercial Taxes has based these calculations on the gross bet value - the total value of every bet placed by players - rather than the gross gaming revenue (GGR), which represents the earnings retained by the casino after payouts.

A Persistent Industry-Wide Dispute

At the heart of the legal friction is a disagreement over whether GST should apply to the total stakes put on the table or only the commission earned by the operator. Delta Corp argues that taxing the gross bet value is "arbitrary and contrary to law", noting that this has become a critical issue for the entire Indian gaming sector. "Demand of 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," stated Dilip Vaidya, Company Secretary and Vice President (Secretarial) at Delta Corp.

Legal Background and Supreme Court Involvement

This is not the first instance of Delta Corp facing significant tax claims. The company previously challenged similar notices covering the period from July 2017 to March 2022. Currently, the Supreme Court of India has stayed proceedings on those earlier notices pending a final disposal of the petitions. The company indicated it intends to pursue all available legal remedies to challenge these new demands for the 2022-23 period as well.

Implications for the Casino Sector

The resolution of these cases is expected to set a major judicial precedent for the Indian casino and online gaming industries. If the courts uphold the government’s stance on taxing gross bet value, it could significantly alter the financial viability of casino operations across the country. For now, Delta Corp remains under legal counsel, maintaining that the current demands do not align with established tax principles for the service industry.

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(The above story first appeared on LatestLY on Mar 20, 2026 12:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).