GST Council defers rate hike on casinos; Rakesh Jhunjhunwala-backed Delta Corp share jumps 7.5% intraday
According to Zee Business, the proposal to levy 28 from 18 per cent GST on casinos at entry fees has been deferred and sent back to the GoM (Group of Ministers) for reconsideration.
Shares of Delta Corp zoomed nearly 7.5 per cent to Rs 191 per share and touched a nearly 13-day high on the BSE during Wednesday’s intraday trading session. The surge in the stock came immediately after the GST Council meeting deferred the rate hike of casinos and online gaming.
Delta Corp Limited is an Indian gaming and hospitality corporation that owns and operates casinos and hotels under several brands. The company is engaged in casino gaming, with the majority of its offshore casinos in Panaji, Goa.
According to Zee Business, the proposal to levy 28 from 18 per cent GST on casinos at entry fees has been deferred and sent back to the GoM (Group of Ministers) for reconsideration.
Talk of GST rate hike on online gaming and casinos has been making round for quite some time and the impact of the same, was quite visible on the stock price of Delta Corp, as the stock in the last 15 sessions witnessed a new 52-week low of Rs 162.1 per share touched on June 16, 2022.
The highest 28 per cent tax rate on online gaming, casinos, and horse racing is slated for discussion on the second day of the GST Council meeting on Wednesday in Chandigarh. On the first day, the GST Council decided to tweak tax rates of some goods and services, including bringing pre-packed foods.
As per the March 2022 shareholding pattern, billionaire investor Rakesh Jhunjhunwala along with his wife Rekha Jhunjhunwala has around 7.5 per cent stakes in Delta Corp. However, latest reports and bulk deals data, the investor couple slashed holding around 3.36 from 6.17 per cent.
The stock has declined nearly 20 per cent in the last one month as compared to over a 5 per cent fall in the S&P BSE Sensex. It closed nearly 2 per cent to Rs 180.9 per share as against a 0.28 per cent fall in the benchmark index..
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