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Casino operator Delta Corp claimed on Friday that it had got intimation from the Hyderabad-based Directorate General of GST Intelligence over alleged Rs 11,139 crore in taxes. A show cause notice will be sent to the company if the amount is not paid. After the GST Council agreed to levy a 28 per cent tax on online gambling, this tax notice is another setback for Delta Corp.

“The DG Notice advises the Company to pay an alleged tax liability of RS 1,11,39,61,03,423 along with interest and penalty for the period from July 2017 to March 2022, failing which a show cause notice will be issued to the Company under Section 74(1) of the CGST Act, 2017 and Goa SGST Act, 2017,” said the firm.

According to Delta Corp, the amount stated in the notice is based on the total gross bet value of all games played at the casinos during a five-year period.

The industry has long demanded that GST be applied to gross bet value rather than total gaming revenue Rs numerous industry-level representations to the government have previously been made on this matter, it added further.

Delta Corp operates in the casino (live, online Rs electronic) gaming sector. It began as a textiles and real estate consulting firm that was incorporated in 1990, but it has since expanded into a variety of industries, including real estate, internet gambling, casino gaming Rs hotels.

The new 28 per cent GST tax is impacting the gaming industry. Some gaming apps have also said last month that it would fire employees in order to survive the tax.

Since the government proposed the new 28 per cent GST in July, Delta Corp shares have fallen by nearly 29 per cent.