I just want to ask and add a logical perspective.
Assuming someone with ₹10,000 buys casino chips at their Casino
Then s/he would get chips worth ₹7,812.50 (₹2,187.50 being the 28% GST component)
Now the very next minute the same person returns and demand refunds for this purchase
So now
Situation 1) the casino returns only ₹7,812.50 to this person and not the GST component
Or situation 2) the casino returns the whole ₹10,000 amount which is inclusive of GST.
What the Delta Corp has explained to its investors on Concall is that it follows the 2nd Option, that it refunds the Whole ₹10,000 inclusive of GST (because here the exchange is merely a transaction and not actual the supply)
So the GST shall be applicable only on the Net Revenue they earn after giving refunds (or prize winnings) to these customers, so this is called Gross Gaming Revenue (GGR) and this is a standard practice which is followed worldwide.
Now the IT department is asking the GST dues based on the 1st Situation.
That is if the customer asks for refund the customer wont get the GST portion back, and based on that logic they have demanded such a huge amount.
Based on this understanding I don’t think IT department would ever succeed in their case against the company.
And anyways if they ever succeed how can they expect to recover Approx 17k Crores worth of dues when company’s net worth itself if 2.5K crores and market cap of 4.5K crores.
(Company also faced similar 6K crore tax notice in 2019 and it successfully defended itself)
So as warren Buffet says be greedy when others are fearful, so is this time to be greedy in this stock, when the price falls on Monday 25/09/2023 ?
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