Delta Corp up 15% Following Supreme Court Relief

Shares of Delta Corp Ltd and Nazara Technologies Ltd spiked by 14% and 7% in today’s trading session after the Supreme Court stayed the GST show cause worth ₹1.12 lakh crore to the gaming companies until March 17, 2025.

The apex court said that further proceedings under the show cause notice will remain stayed until a verdict is proclaimed.

Notably, DGGI raised tax demands worth ₹1.12 lakh crore against 71 online gaming companies, for which penalties can soar up to ₹2.3 lakh crore.

Previously, an amendment to the CGST Act provided a 28% tax on "full face value" of the entry amount, which came into force in 2017. Following this, show cause notices were served to the gaming companies, which were challenged later on.

In May 2023, the Karnataka High Court had quashed notices worth ₹21,000 crore issued to Gameskraft. The Supreme Court stayed Karnataka High Court order in September 2023.

As of 3:25 pm, shares of Delta Corp Ltd are trading at ₹118.74, while Nazara Technologies Ltd is down by 3.21% at ₹959.