Paytm subsidiary gets SC stay order for ₹5,700 Crore GST order

26 May 2025 , 02:56 PM

Paytm shares zoomed as much as 3% on May 26 after the company informed the bourses and shareholders in its filing that it has received a stay order from Supreme Court for a GST show cause notice worth ₹5,712 Crore. The order was issued against the company’s subsidiary First Games Technology.

At around 1.58 PM, Paytm was trading 3.12% higher at ₹870.30, against the previous close of ₹843.95 on NSE. The counter touched an intraday high of ₹871.75.

In its filing with the exchanges, Paytm stated that First Games secured the show cause notice wherein the Directorate General of GST Intelligence (DGGI) was of the view that GST liability should be calculated at 28% on the total entry amount instead of 18% GST paid on the platform fee generated by the gaming companies. 

The company also said this issue relates to the entire industry where the GST department has sent notices to various other gaming companies prior to this. This matter is currently under consideration with the Honorable Supreme Court and they have allowed the company an interim relief by announcing a stay order for any further proceedings.

Paytm also informed that First Games will be contesting the notice and its proposed liability of ₹5,712 Crore by filing the writ petition. The liability incurred is for the period from January 2018 to March 2023.

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