‘Big relief’ for online gaming: Sanjit Bangar flags sharp GST demand cuts, no director penalties
The latest GST orders have sharply reduced tax demands against major online gaming companies, offering relief to the sector. Tax Buddy founder Sanjit Bangar also highlighted the absence of personal penalties on directors in the cases covered so far.
- Oct 3, 2026,
- Updated Oct 3, 2026 5:25 PM IST
The online gaming industry has received a significant reprieve in some of the first final GST orders in cases involving large tax demands. Tax authorities have substantially reduced the amounts payable by companies including Delta Corp and Pacific Gaming, while directors have not been subjected to personal penalties in the cases covered so far.
According to Sanjit Bangar, founder of Tax Buddy, the GST demand against Delta Corp has been reduced from about Rs 16,000 crore to Rs 117 crore, while the demand against Pacific Gaming has fallen from Rs 721 crore to Rs 100.8 crore.
The orders are being closely watched by the online gaming sector, which has faced massive GST demands following the government's decision to impose a 28% GST on online money gaming. The tax was introduced from October 1, 2023, with the levy applying to the full face value of bets rather than the gaming operator's revenue or gross gaming revenue.
The scale of the original tax demands had raised concerns about the financial viability of several gaming companies and the potential liability of their promoters and directors, the Economic Times reported.
One of the significant aspects of the first final orders is that no personal penalties have been imposed on the directors of the gaming companies covered by these rulings. The development could provide some relief to promoters and senior executives who had faced the possibility of individual liability in addition to the tax demands raised against their companies.
The reduction in the Delta Corp and Pacific Gaming demands also highlights the difference between the initial tax claims and the amounts ultimately determined after adjudication.
The gaming sector is now awaiting further final orders in other high-profile cases.
The report stated that final orders involving Dream11 and Gameskraft are expected by October 14, 2026. These cases are being closely monitored because of the size of the tax demands and their potential implications for the industry's GST liabilities.
The dispute over GST treatment has been one of the biggest regulatory challenges for India's online gaming companies. Before the 28% levy came into force, gaming companies had generally paid GST on their platform or gross gaming revenue under the prevailing framework. The subsequent move to tax the full value of bets significantly increased the potential tax liability.
The latest orders could therefore provide important signals for how authorities are applying the GST framework while adjudicating past demands. For the industry, two issues remain particularly important: the final tax liability determined for individual gaming companies and whether authorities will continue to refrain from imposing personal penalties on directors.
With more final orders expected in the coming days, the outcomes involving Dream11, Gameskraft and other gaming companies could provide greater clarity on the treatment of legacy GST disputes and the financial liabilities facing the sector.
The online gaming industry has received a significant reprieve in some of the first final GST orders in cases involving large tax demands. Tax authorities have substantially reduced the amounts payable by companies including Delta Corp and Pacific Gaming, while directors have not been subjected to personal penalties in the cases covered so far.
According to Sanjit Bangar, founder of Tax Buddy, the GST demand against Delta Corp has been reduced from about Rs 16,000 crore to Rs 117 crore, while the demand against Pacific Gaming has fallen from Rs 721 crore to Rs 100.8 crore.
The orders are being closely watched by the online gaming sector, which has faced massive GST demands following the government's decision to impose a 28% GST on online money gaming. The tax was introduced from October 1, 2023, with the levy applying to the full face value of bets rather than the gaming operator's revenue or gross gaming revenue.
The scale of the original tax demands had raised concerns about the financial viability of several gaming companies and the potential liability of their promoters and directors, the Economic Times reported.
One of the significant aspects of the first final orders is that no personal penalties have been imposed on the directors of the gaming companies covered by these rulings. The development could provide some relief to promoters and senior executives who had faced the possibility of individual liability in addition to the tax demands raised against their companies.
The reduction in the Delta Corp and Pacific Gaming demands also highlights the difference between the initial tax claims and the amounts ultimately determined after adjudication.
The gaming sector is now awaiting further final orders in other high-profile cases.
The report stated that final orders involving Dream11 and Gameskraft are expected by October 14, 2026. These cases are being closely monitored because of the size of the tax demands and their potential implications for the industry's GST liabilities.
The dispute over GST treatment has been one of the biggest regulatory challenges for India's online gaming companies. Before the 28% levy came into force, gaming companies had generally paid GST on their platform or gross gaming revenue under the prevailing framework. The subsequent move to tax the full value of bets significantly increased the potential tax liability.
The latest orders could therefore provide important signals for how authorities are applying the GST framework while adjudicating past demands. For the industry, two issues remain particularly important: the final tax liability determined for individual gaming companies and whether authorities will continue to refrain from imposing personal penalties on directors.
With more final orders expected in the coming days, the outcomes involving Dream11, Gameskraft and other gaming companies could provide greater clarity on the treatment of legacy GST disputes and the financial liabilities facing the sector.