India's Casino Industry Faces Intensified GST Evasion Probe – myITreturn Help Center

Tax authorities in India have ramped up their efforts to scrutinise the financial transactions of casinos to uncover potential cases of GST evasion in the past.

DeltaCorp, a prominent casino chain, has already found itself in the crosshairs of tax authorities, having received multiple notices. On September 22, the company received tax notices worth a staggering 16,822 crores of which Rs 11,140 crore was against DeltaCorp and Rs. 5,682 crore against its three subsidiaries, including Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises. Thereafter, on October 14, its subsidiary, Deltatech Gaming, had been issued notices for an amount of Rs 6,384 crore increasing its cumulative tax shortfall obligation to a staggering sum of Rs 23,206 crore.

Casinos in India are primarily located in the states of Goa and Sikkim, where they also serve as popular tourist attractions. Tax officials are currently investigating whether these casinos have any outstanding tax liabilities from previous years.

This increased scrutiny comes in the wake of a notification from the government imposing a 28% GST on online gaming, horse racing, and casinos. In the case of casinos, consumers are required to pay GST upfront on the full value of the chips they purchase. The demand for GST on the gross bet value has been a contentious issue within the industry. Various representations have already been made to the government on an industry level in relation to this matter.

In summary, the increased scrutiny of casinos for potential GST evasion has brought several prominent casino chains under the tax authorities' radar. As the industry grapples with the implications of these investigations, it remains to be seen how the gaming landscape will evolve.

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