One 97 Communications Limited has announced that a recent Supreme Court ruling on the Goods and Services Tax (GST) for online gaming companies will not impact its operations or financials. The ruling, which upholds a 28% GST levy on online gaming, pertains to First Games Technology Private Limited (FGTPL), a subsidiary of One 97 Communications. FGTPL, which was involved in online real money gaming, discontinued its operations on August 25, 2025, following the enactment of ‘The Promotion and Regulation of Online Gaming Act, 2025’.
The GST matter dates back to a Show Cause Notice received by FGTPL on April 28, 2025, which proposed a liability of ₹5,712 crores for the period from January 2018 to March 2023. This liability is still pending adjudication. Despite this, One 97 Communications has clarified that the carrying value of its investment in FGTPL is already nil as of March 31, 2026, ensuring no incremental impact on its consolidated financial statements.
Furthermore, FGTPL is treated as a joint venture for group consolidation purposes, meaning its revenues are not included in One 97 Communications’ financial statements. The share of profit or loss from FGTPL is reported as nil in the company’s consolidated profit and loss account for the financial year ending March 31, 2026.
This announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and is available on the company’s investor relations website.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).