Delta Corp's Goa GST demand cut by ₹8 crore on rectification orders

The rectification in numbers

What the rectification changed

The authority held that differential GST on taxable package or mixed supply receipts is to be computed on a cum-tax basis, consistent with the show cause notice, after giving credit for GST already discharged on the corresponding receipts. The original orders had applied the rate on an ex-tax basis.

The authority held that this ex-tax application was an error apparent on the face of the record. Save for this rectification, the filing says all other findings and directions in the original orders remain unchanged.

Penalty and interest after the rectification

The penalty under Section 74 of the CGST Act for the shortfall of tax payment is reduced to ₹28.99 crore in total. Of this, ₹21.54 crore relates to Delta Corp, ₹6.70 crore to Highstreet Cruises and Entertainment Private Limited and ₹75.45 lakh to Delta Pleasure Cruise Company Private Limited.

Interest at 18% per annum applies to the unpaid differential GST from the due date for payment of the differential tax until the amounts are paid.

What the rectification means for Delta Corp's shareholders

The company's own share of the aggregate demand reduction is ₹6.03 crore. The company and its subsidiaries are evaluating both the rectification orders and the original orders, and may take appropriate steps, including filing appeals, within the timelines prescribed under law.

The filing does not say whether an appeal has been filed, whether any amount has been paid, or what effect the orders have on results. The next step is any appeal within the prescribed timelines, and the filing gives no date for it.

Reference: Original filing (PDF)