The discussion revolves around the recent Goods and Services Tax (GST) demand notice received by Delta Corp, India's largest casino player. The demand notice amounts to 16.8 billion rupees and is based on a Cross Value Bet, not gross gaming value. This has led to a significant drop in the company's stock value.
The panelists discuss the potential legal remedies available to Delta Corp. They argue that the GST demand is arbitrary and contrary to law, and that the company will likely pursue these tax demands. The current stock correction is not just for today, but has been a consistent trend over the past few months.
The panel also touches on the ongoing debate about the GST on online gaming. They mention that the law is still operational until October 1, and a new amended law is set to be implemented from October 1. The amended law allows for the taxation of gross bet value, which is significantly higher than the value paid as consideration for service, which is currently the basis for taxation.
The panelists agree that the industry has solid legal ground in terms of the taxability (whether it's a game of skill or chance) and the valuation (whether it should be taxed on the gross bet value or the value paid as consideration for service). However, the challenge lies in the retrospective nature of the demand notice, as the law allows for retrospective amendments only if they are specific. The panelists believe that the current demand notices cannot be considered retrospective, as they are not based on the law that is set to come into effect in October.
In conclusion, the discussion emphasizes the potential legal challenges that Delta Corp and the gaming industry face due to the recent GST demand. The panelists suggest that these issues are likely to be settled at the Supreme Court level over many years.
Here are the key facts extracted from the text:
1. Delta Corp has received a Goods and Services Tax (GST) demand notice for 16,800 crore rupees.
2. The demand notice is for a period between June 20, 2017, and March 2022.
3. The GST demand is based on Cross value bet and not gross gaming value.
4. Delta Corp has stated that the notices and tax demands are arbitrary and contrary to law.
5. Delta Corp has plans to pursue legal remedies against the tax demands.
6. The stock of Delta Corp has been affected due to the GST demand notice.
7. The company believes that the GST demand has been based on retrospective law, which is not yet effective.
8. Delta Corp argues that the GST should be levied on the service fee or income made, not the gross gaming value.
9. The amended law, which has provisions to treat deposit as value, is proposed to be applied prospectively.
10. The company's challenge will be based on the retrospective nature of the GST demand, not on how the taxes should be collected.