‘Charging GST on face value doesn’t seem logical’ – Delta Group CFO Hardik Dhebar opines over GST on online gaming

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TheQ1 net profits of Delta Corp Ltd. saw a 19% Y-o-Y (year-on-year) rise. Speaking on the same, Delta group CFO, Hardik Dhebar mentioned the recent changes in the GST rates made by the GST council. Dhebar also opined how it will affect the online real money gaming (RMG) industry.

Speaking on the matter from Delta perspective, Dhebar said that as far as he thinks, the unanimous decision for tax rate was for online gaming and for offline gaming and casinos the consensus didn’t happen. Although Delta’s 85-90 percent of the business is offline, Dhebar feels that they should do well for the time being.

In an exclusive interview with ET Now about the recently announced Delta Tech IPO and if there will be any delay on it, Dhebar said that they are waiting for further clarity on the matter. The company was previously ready, however, the current uncertainty calls for a delay as investors in Delta Group would also want clarity on the new GST rate.

The CFO also added that the GST council’s decision to charge GST on full face value doesn’t seem logical. To explain, he drew compared it with how a stockbroker charges GST only on the amount of brokerage, and not the complete amount traded with.

The profits as per report were from the previous quarter, but according to Dhebar, the trajectory for offline business seems even better than what the company reported for the first quarter. In fact, there will be no changes till the new GST comes into effect for the online side of business. While there might be some ups and downs, the overall result is expected to remain positive.

Q1 results portray growth trajectory for Delta Corp

Delta Corp recent announced its Q1 results for FY 2023-24 where the company saw a rise of 9 percent as the consolidated revenue for the year stood at Rs 272.8 crores. The consolidated EBITDA and net profit saw a rise of 9.5 and 18.9 percent, respectively.

Meanwhile, Delta Corp chairman, Jaydev Mody announced that the company reached a new milestone of the highest revenue ever.

“Regulatory clarity over issues concerning the industry is expected in due course of time, however the company and the management are seized of the issues and concerns around the business and are confident of overcoming the same by implementing the right strategies,” Mody said.