Nazara Tech, Delta Corp shares tumble up to 14% after GST increase

economictimes.indiatimes.com:

Nazara Technologies tumbled over 14% while those of Delta Corp hit the 10% lower circuit in Wednesday's trade after the GST Council, headed by Union Finance Minister Nirmala Sitharaman, gave the nod to levy 28% GST on online gaming, horse racing and casinos at full value at the 50th meeting of the GST Council held in Delhi. In a major setback to the country's online gaming industry, the GST Council on Tuesday decided to levy a 28% tax on the full value of monies paid by users. Moreover, GST on online gaming will be imposed without any differentiation of whether it's based on skill or chance.

On the increase, Nazara Technologies said that the GST Council's decision to levy a 28% goods and services tax (GST) on online gaming will apply only to the skill-based real money gaming segment of its business, which contributed 5.2% to the company's overall consolidated revenue during FY23. «The company will proactively take steps to mitigate any potential impact to this segment of our business, and we anticipate minimal impact to our overall revenues,» it said in an exchange filing. «The company remains committed to its growth agenda and will continue to pursue organic and inorganic opportunities across various segments in which it operates,» it said.

At 9.37 am, the shares of Nazara Technologies were trading 6.8% lower at Rs 658.5. At the same time, shares of Delta Corp were locked in the 10% lower circuit at Rs 222.1 on BSE. Industry stakeholders have termed it «unconstitutional and irrational».