During the final round in Baku, Azerbaijan, the Thai world No 1 exchanged blows with the Turkish world No 4 in the three-round battle of the women's 49 kg category.
Dincel scored her victory in the third round at 11-4 as she managed to land three kicks to Panipak's head.
Dincel became the champion of women's 49 kg category for the first time, while Panipak was runner-up for the second time since the 2017 championship in South Korea.
Panipak said after the competition that while she regretted being unable to win the competition, she had done her best.
She also vowed to do better in the upcoming 2023 World Taekwondo Grand Prix in Rome, Italy, from June 9 to 11.