Goemkapronn desk
PANAJI: The Directorate General of GST Intelligence (DGGI) has trained its focus on about a dozen casinos operating in Goa and Sikkim. The DGGI has alleged a staggering Rs 10,000 crore in tax avoidance by these establishments, leading to intense ongoing investigations.
According to sources close to CNBC-TV18, the DGGI investigations are centred on two key aspects: the wrongful payment of GST at a lower rate of 18 percent instead of the mandated 28 percent, and the misuse of Input Tax Credit (ITC) through fraudulent claims.
Delta Corp, the only listed casino gaming company in the country, slided more than three precent from intra-day highs on the report.
The controversy surrounding the tax payments by casinos stems from a lack of clarity in the tax law. Some establishments took advantage of the ambiguity in the law and remitted GST at a lower rate of 18 percent.
It was only after the 50th GST Council meeting that the tax rate for casinos was clarified and set at 28 percent. Unfortunately, this clarification came too late for several casinos already under the DGGI’s scanner for investigations that had commenced before the decision was made.
Earlier this month, Revenue Secretary Sanjay Malhotra told CNBC-TV18 that the rate was always fixed at 28 percent for real money gamey games and the announcement post the GST Council meeting was only a clarification.
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