Delta Corp, a casino operator, challenges CGST Rule 31(A).

Delta Corp, the gambling service provider that has received a substantial GST demand, has contested Rule 31(A) of the CGST Rules, 2017 and Section 15(5) of the CGST Act along with specific notifications and circulars issued under the said legislation.

While Rule 31(A) pertains to the calculation of the value of the provision in cases of lotteries, bets, gambling, and horse racing, section 15(5) deals with determining the value of taxable goods and services. In a recent session held at the Goa branch of the Bombay High Court, Delta Corp was supported by renowned legal counsel Harish Salve and other representatives.

 

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Delta Corp's decision to challenge Rule 31(A) of the CGST Rules, 2017 and Section 15(5) of the CGST Act, along with the notifications and circulars issued under these legislations, is an important development in their ongoing dispute with regards to GST demands.

Rule 31(A) of the CGST Rules deals specifically with the calculation of the value of services related to lotteries, bets, gambling, and horse racing. This rule is crucial for determining the GST liability in the context of these activities. Section 15(5) of the CGST Act is also relevant as it provides guidance on the determination of the value of taxable goods and services.

By challenging these provisions, Delta Corp is seeking to contest the methodology employed by the tax authorities in calculating their GST liability. It is important to note that Delta Corp is not challenging the validity of the GST itself, but rather the specific rules and provisions governing its calculation in the context of their business operations.

Delta Corp's case received support from prominent legal counsel Harish Salve and other representatives in a recent session held at the Goa branch of the Bombay High Court. This suggests that Delta Corp is taking the matter seriously and has enlisted top-notch legal expertise to present their arguments effectively.

It remains to be seen how the court will rule on this matter. The outcome of this legal challenge could have significant implications not just for Delta Corp but also for the wider gambling and entertainment industry in India. It will also provide clarity on the interpretation of the relevant GST provisions and rules, potentially impacting how taxes are calculated and paid in this sector.

Overall, Delta Corp's decision to contest Rule 31(A) of the CGST Rules, 2017, Section 15(5) of the CGST Act, and related notifications and circulars, demonstrates their commitment to resolving their GST dispute and seeking clarity on the applicable tax provisions.