Indian Authorities Slash GST Demands on Dream11, Gameskraft, and Play Games24x7 Operators by 75%

Indian tax authorities have reduced Goods and Services Tax (GST) demands against Sporta Technologies, Gameskraft Technologies, and Play Games24x7 by approximately ₹52,915 crore following a Supreme Court ruling, as reported by World Casino News.

The combined principal demands declined from ₹70,212.87 crore to ₹17,297.62 crore, a cut of 75.4%. The revised assessments calculate liabilities using verified player deposits and exclude winnings reused in subsequent games without withdrawal.

Operator-Specific Demand Reductions

Sporta Technologies, operator of Dream11, received the largest absolute reduction. The Mumbai East Commissionerate lowered its demand from ₹28,294.18 crore to ₹6,690.87 crore, removing ₹21,603.31 crore. The confirmed liability covers transactions from July 2017 to March 2023 and includes ₹5,671.60 crore in integrated GST, plus ₹509.64 crore each in central and state GST. Authorities directed recovery of applicable interest after prior payments and imposed a penalty under Section 73(9) of the Central Goods and Services Tax Act while withdrawing several additional proposed penalties.

Gameskraft Technologies, operating RummyCulture and Gamezy, achieved the largest percentage reduction at 76.7%. Its demand fell from ₹20,989.31 crore to ₹4,887.05 crore for activity between August 2017 and June 2022, based on a taxable value of ₹20,261.97 crore from verified deposits. Officials credited ₹20 crore previously paid and imposed a penalty equal to the confirmed principal tax. Proposed personal penalties against five individuals and overlapping penalties were withdrawn.

Play Games24x7, operator of RummyCircle and My11Circle, saw a 72.7% reduction to ₹5,719.70 crore for transactions from July 2017 through the 2022-23 financial year. Authorities credited ₹1,407.38 crore in earlier payments, imposed a matching penalty, and issued a separate integrated GST demand of ₹32.52 crore for foreign expenditure tied to its US branch.

Revised Calculation Method from May 2026 Ruling

The adjustments follow the Supreme Court’s May 27, 2026 judgment upholding retrospective taxation while requiring verified player deposit calculations. Earlier methods had repeatedly counted reused winnings as additional deposits, inflating taxable values. The ruling clarified that a deposit of ₹10,000 followed by a ₹2,000 win and reuse of the ₹12,000 balance creates no new taxable deposit; only fresh deposits after withdrawals count.

This framework upheld Rule 31A and treated Rules 31B and 31C as clarificatory with retrospective application. The demands address pre-ban transactions completed before the Promotion and Regulation of Online Gaming Act prohibited online money games in August 2025. The revised orders leave the three operators with confirmed principal taxes, applicable interest calculated separately, and penalties matching the principal for Gameskraft and Play Games24x7. The changes establish lower demands while recognizing prior payments but do not waive all obligations.

Reporting: World Casino News

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