$DELTACORP

Gaming stocks remained under pressure on May 29 after the Supreme Court upheld retrospective Goods and Services Tax (GST) demands on online gaming companies in a landmark ruling concerning the levy of 28% GST on the full face value of bets placed on gaming platforms. Shares of Delta Corp Ltd witnessed sharp selling pressure during the session. According to NSE data, the stock was trading at Rs 69.50, down 14.25%. Nazara Technologies Ltd also traded lower, with its shares falling 1.52% to Rs 285.10. In its ruling, the Supreme Court held that online gaming platforms cannot be classified merely as intermediaries and observed that such activities qualify as actionable claims under GST law. The apex court further stated that legislative amendments validating the 28% GST levy were clarificatory in nature, making them applicable retrospectively. The verdict comes as a major setback for online gaming companies, which had challenged the retrospective tax demands. The firms argued that the government’s interpretation of online gaming as “gambling” under GST law was inconsistent with decades of judicial precedents established by the Supreme Court and various High Courts.