Following the SC's decision to extend the show-cause notice until March 17, Delta Corp. shares jump 7%.

Following the SC's decision to extend the show-cause notice until March 17, Delta Corp. shares jump 7%.

Following the Supreme Court's decision to halt the issuance of GST show cause letters totaling ₹1.12 lakh crore to online gaming companies, Delta Corp.'s stock increased by as much as 7% on January 10.

Until the matter is settled, the Supreme Court has put a stop to all additional show-cause notice procedures. March 17 is the day of the last hearing.

At 12:10 PM on January 10, Delta Corp's stock was up more than 4% at ₹118.16 per share on the NSE.

All future actions pertaining to the show cause notice have been ordered to stop by the Supreme Court until the matter is definitively settled. 71 show-cause notices totaling ₹1.12 lakh crore were sent to online gaming companies for allegedly dodging Goods and Services Tax (GST) in 2022–2023 and the first seven months of 2023–2024.

Concerning possible coercive measures by tax officials in relation to the GST show cause notices, the gaming industry has asked for a delay on the notices.

Tax requests of ₹1.12 lakh crore were made by the DGGI against 71 online gaming enterprises; penalties could increase this amount to ₹2.3 lakh crore.

A 28 percent tax on the "full face value" of the entry amount was added to the CGST Act in August 2023, and it went into effect retroactively from 2017. As a result, the sector received show-cause notifications, which prompted gaming corporations to contest the orders.

The Karnataka High Court already revoked notifications of ₹21,000 crore that were sent to Gameskraft in May 2023. In September 2023, the Supreme Court, however, suspended this order.

"Online gaming companies are greatly relieved by the Supreme Court's decision. According to the Government of India (GoI) and businesses such as Delta Corp. and Nazara Technologies, 28% GST would be in effect starting on October 1, 2023.However, according to the GoI, the change in GST from 18% to 28% effective October 1, 2023, was made merely for clarity. Mahesh M. Ojha, AVP—Research at Hensex Securities, stated that this resulted in significant GST notices for online gaming enterprises, amounting to around ₹1.13 lakh crore in FY23 and the first seven months of FY24.