25 May 2025, Sun

Paytm Gets Relief from Supreme Court GST Notice of 5712 Crore Rupees Stayed

Paytm gst notice: The Supreme Court has given great relief to Paytm’s parent company One 97 Communications Limited (OCL). The court has stayed the GST notice sent to the company’s real money gaming platform. According to a regulatory filing, on Saturday, May 24, the Supreme Court announced a ban on GST notice of Rs 5,712 crore released to Paytm’s Gaming Branch – First Games.

‘Tax case related to industry’- company

In fact, a show cause notice (SCN) was issued by the Directorate General of GST Intelligence in April. The first game challenged this notice in the Supreme Court. Now on May 23, 2025, the Supreme Court has stayed the action of this notice.

One 97 Communications had said that the tax case is not limited to first game. It is connected to the entire industry and its hearing is being held in the Supreme Court. Paytm has said in its regulatory filing, as per the order of the Supreme Court, further proceedings on all the concerned show causes notice will be postponed until the final settlement of the main case is done.

Demand for GST at the rate of 28 percent

The filing stated, under Section 74 (1), UPGST Act, 2017 and IGST Act, 2017 of CGST Act, 2017, a show cause notice has been issued to First Games under Section 20 of 2017, which has proposed GST demand and applicable interest and fine for GST cases running from online gaming industry. In which DGGI believes that GST liability for online gaming platforms should be calculated at 28 percent of the total entrance.

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