Delta Corp, the casino operator that has received a huge GST demand, has challenged Rule 31(A) of the CGST Rules, 2017 and Section 15(5) of the CGST Act and certain notifications and circulars issued under the Act.

While Rule 31 (A) deals with value of the supply in case of lottery, betting, gambling and horse racing, section 15(5) deals with the value of taxable supply of goods and services. In a recent hearing at the Goa bench of the Bombay High Court, Delta Corp was represented by senior advocate Harish Salve among others.

Since Delta Corp had challenged Section 15(5) of the CGST Act, a bench comprising Justices Bharat P. Deshpande and M.S. Sonak sought the assistance of the attorney-general. The court has placed the matter for final disposal on February 5, 2024.

The bench has also directed the GST authorities not to pass final orders without its permission on the notices sent to Delta Corp and its subsidiaries.