Indian tax authorities have substantially reduced Goods and Services Tax (GST) demands against three major online gaming companies. The reductions follow a recalculation of their liabilities after the Supreme Court's May 2026 ruling, as reported by exchange4media.
Combined proposed demands against Sporta Technologies, Gameskraft Technologies and Play Games 24x7 originally stood at approximately Rs 70,212.87 crore. Adjudication orders have now confirmed principal gaming-tax liabilities of Rs 17,297.62 crore, representing a reduction of Rs 52,915.25 crore, or 75.4%.
Sporta Technologies, which operates Dream11, received the largest reduction by value. Its proposed demand of approximately Rs 28,294.18 crore was reduced by Rs 21,603.31 crore, leaving a confirmed gross GST liability of Rs 6,690.87 crore for July 2017 to March 2023.
Gameskraft recorded the largest percentage reduction at 76.7%. Its proposed liability fell from approximately Rs 20,989.31 crore to Rs 4,887.05 crore, reducing the demand by Rs 16,102.26 crore.
The Gameskraft order covers RummyCulture and Gamezy and reflects a revised approach to taxable value. Verified deposits were used rather than automatically treating cumulative buy-ins, including winnings repeatedly reused for play, as the valuation basis.
Play Games 24x7, operator of RummyCircle and My11Circle, had its proposed demand reduced by 72.7%, from approximately Rs 20,929.38 crore to Rs 5,719.70 crore.
The company also faces a separate Rs 32.52 crore IGST demand relating to specified foreign expenditure and remittances involving its US branch, which is excluded from the combined principal gaming-tax comparison.
The reductions do not eliminate the companies' tax obligations. Interest remains applicable, while Gameskraft and Play Games 24x7 also face penalties equivalent to their respective confirmed principal tax liabilities.
The headline figures exclude interest, penalties and certain payment adjustments
