Paytm gets relief as Supreme Court stays Rs 5,712 Cr GST notice

The Supreme Court has granted significant relief to Paytm's subsidiary, First Games Technology Private Limited, by staying proceedings on a substantial ₹5,712 crore GST show cause notice. This notice from the Directorate General of GST Intelligence covered transactions from January 2018 to March 2023. The dispute centers on the GST rate for online gaming; authorities demand 28% on the full entry amount, while gaming companies argue for 18% on their platform fees only. This interim order offers a temporary reprieve for Paytm, whose operating revenue in Q4 FY25 saw a 16% year-on-year decline, despite a considerable reduction in losses. The case's final outcome will set a critical precedent for the burgeoning Indian online gaming industry regarding its tax liabilities.