Nazara Technologies and Delta Corp. Shares Rise 2% Following Rethink of 28% GST on Online Gaming
Following the announcement that the Goods and Services Tax (GST) Council will be revisiting its decision to slap a 28% tax on online gambling, shares of Nazara Technologies and Delta Corp were trading higher in the early hours of Tuesday.
Nazara Technologies started trading at Rs 683.05. Shares of Delta Corp opened at Rs 186.60 on the Bombay Stock Exchange (BSE).
Nazara shares were up 1.49 percent at Rs 678.75 at 11:00 AM, while Delta Corp shares were trading 2.59 percent higher at Rs 187.80.
Rajiv Chandrasekhar, a minister of state for electronics and IT, said that as the regulatory framework for online gambling laws develops, the ministry would petition the GST Council to reconsider its decision to levy a 28% tax on the business.
“The development of a viable, legal framework for internet gaming is still in its infancy. As a result, we will take care of it and return to the GST Council to maybe ask for their adoption of the new regulatory framework, the official added.
The GST Council said on July 11 that the government will levy a 28% tax on the winnings from casinos, horse racing, and internet gambling.
“The gambling sector is anticipated to be significantly impacted by the Goods and Services Tax (GST) rise to 28%. Both customers and game producers will probably experience a number of effects as a result of this tax increase. First off, because there will be additional taxes on their hardware, software, and other resources, game makers may have to pay greater production expenses. This may deter new game development endeavors and impede the industry’s growth and innovation, according to Girish Sodani, Head of Equity Market at Swastika Investmart Ltd.
Following the GST council’s announcement of a standard GST of 28%, shares of Nazara Technologies, Delta Corp., and other gaming businesses saw steep losses in early trading on Wednesday, July 12.
On July 12, Delta Corp shares began at Rs 222.15, a 10% decrease, while Nazara Technologies shares fell almost 14% in early trading.
