India slashes proposed GST demands against three gaming firms

The reassessments followed a May 2026 Supreme Court ruling on GST valuation.

India.- The Indian government has cut proposed Goods and Services Tax (GST) demands against three major online gaming companies by ₹52,915 crore (US$5.6bn), a 75.4 per cent reduction following a reassessment of their tax liabilities. The revised tax demands cover Sporta Technologies, operator of Dream11; Gameskraft Technologies, which runs RummyCulture and Gamezy; and Play Games 24×7, the company behind RummyCircle and My11Circle.

The original proposed demands against the three companies totalled approximately ₹70,212.87 crore (US$7.4bn). The reassessments bring their combined principal tax liability to ₹17,297.62 crore (US$1.8bn), excluding applicable interest and penalties. Sporta received the largest reduction, with ₹21,603.31 crore (US$2.3bn) dropped from its proposed demand, leaving a confirmed tax liability of ₹6,690.87 crore (US$709m). Gameskraft’s demand was reduced by ₹16,102.26 crore (US$1.7bn) to ₹4,887.05 crore (US$518m), while Play Games 24×7’s was reduced by ₹15,209.68 crore (US$1.6bn) to ₹5,719.70 crore (US$606m).

The changes follow a May 27, 2026, Supreme Court ruling that upheld GST on online gaming and required tax authorities to recalculate pending demands based on player deposits rather than cumulative buy-ins that repeatedly counted winnings reused in subsequent games. The revised liabilities do not represent the full amount payable by the companies. Gameskraft and Play Games 24×7 were each penalised an amount equal to their confirmed principal tax liability, while Sporta was penalised under a different provision. Applicable interest and credits for payments already made will also affect the final amounts due.

The tax orders concern transactions from earlier periods and are separate from India’s Promotion and Regulation of Online Gaming Act, enacted in August 2025, which prohibits online money games.