One 97 Communications Ltd
One 97 Communications: GST demand on First Games reduced to Rs. 703.66 crore
REGULATORY
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 13 Oct 2026, 07:12 PM IST · BSE ID: 7b0b5296-4fe7-4624-8aa8-bc764b1148a5
View Original BSE Filing (PDF)
💡
In Simple Terms
The company's subsidiary received a smaller tax demand of INR 703.66 crore, down from an initial INR 5,712 crore proposal.
🤖 AI Summary
- First Games Technology's GST demand reduced to INR 703.66 crore from INR 5,712 crore.
- Demand covers tax, penalty, and interest for April 2018 to March 2023.
- No incremental financial impact on One 97 Communications stated.
- Subsidiary is treated as a joint venture for consolidation purposes.
- Investment carrying value in subsidiary is nil as of March 31, 2026.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Proposed GST demand on First Games
INR 5,712 crores
Reduced GST liability for First Games
INR 703.66 crore
Applicable tax period
April 2018 to March 2023
Carrying value of investment in FGTPL (as on March 31, 2026)
nil
🏢 How This Affects the Company
The demand order for subsidiary First Games Technology Private Limited (FGTPL) has no incremental financial impact on One 97 Communications Limited. FGTPL is accounted for as a joint venture, with its revenues not consolidated. The carrying value of the investment in FGTPL was nil as of March 31, 2026.
This order reduces the potential financial exposure from the GST demand on FGTPL, which was previously flagged as a significant contingent liability.
👥 What This Means For Shareholders
✅
Action Required
No action is required from shareholders regarding this disclosure.
👤
Who Is Affected
All shareholders of One 97 Communications Limited. The reduced demand lessens a previously identified contingent liability.
🔍
Management Signal
Management is actively addressing regulatory demands on subsidiaries and communicating material developments promptly.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
First Games Technology's decision on appealing the demand order.
Any further updates on FGTPL's operational status post-discontinuation.
Company's next quarterly financial results announcement.
MEDIUM RISK
While reduced, a substantial GST liability and penalty still exists for a subsidiary.
💡 Investor Takeaway
One 97 Communications' subsidiary, First Games Technology, received a reduced GST demand of INR 703.66 crore (down from INR 5,712 crore), with no incremental financial impact on the parent company due to its accounting treatment.
⚖️ Strengths & Concerns
✅ Positives
- GST demand on subsidiary reduced by approximately 87.7% from INR 5,712 crore to INR 703.66 crore.
- Company explicitly states no incremental financial impact on its consolidated statements due to joint venture accounting.
⚠️ Concerns
- Subsidiary faces a tax, penalty, and interest liability of INR 703.66 crore.
- First Games Technology discontinued real-money gaming operations as of March 31, 2026.
❓ Frequently Asked Questions
What was the original proposed GST demand on First Games Technology?
The original proposed GST demand on First Games Technology Private Limited was INR 5,712 crores plus applicable interest and penalties.
What is the revised GST demand order for First Games Technology?
The revised GST demand order for First Games Technology is INR 703.66 crore for tax, with an equivalent penalty and applicable interest.
What is the period covered by this GST demand?
The GST demand covers the period from April 2018 to March 2023.
Will this demand impact One 97 Communications financially?
One 97 Communications states there is no incremental financial impact as First Games is a joint venture and its investment carrying value is nil.
Has First Games Technology ceased operations?
Yes, First Games Technology discontinued its real-money gaming operations pursuant to the Promotion and Regulation of Online Gaming Act, 2025.
Questions based on this BSE filing only. For information purposes.