Paytm Share Price in Focus After ₹5,712 Crore GST Notice to Subsidiary

Shares of One 97 Communications Ltd (Paytm) are in focus after its subsidiary, considered a joint venture (JV) for group consolidation, received a GST show cause notice of ₹5,712 crore. The Directorate General of GST Intelligence (DGGI) claims that GST should be calculated at 28% on the total entry amount, instead of 18% paid earlier on the platform fees by gaming companies.

Industry-Wide Issue and Legal Status

Paytm said that the GST department has sent similar notices to several gaming companies. The matter is already under review by the Supreme Court, which has provided interim relief by putting a stay on further proceedings for now.

Impact on Paytm’s Financials

Paytm clarified that this notice will not affect its main operations. The revenues of First Games are not included in Paytm’s consolidated financials. Also, the share of First Games’ profit or loss is less than 1% of Paytm’s total profit/loss for the financial year ending March 31, 2024. The company’s total exposure to First Games is around ₹225 crore, mainly through a shareholder loan.

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About One97 Communications Ltd

One97 Communications Ltd is a multinational technology company based in Noida, Uttar Pradesh, India. Founded in 2000 by Vijay Shekhar Sharma, the company provides digital payment and financial services to both consumers and merchants across India through its various subsidiaries and business operations.

Stock Performance 

As of April 29, 2025, Paytm share price is trading at ₹866.00, down 1.79% for the day. Over the past month, the stock has gained 8.10%, rising ₹64.90. In the last 6 months, it has climbed 16.27%, up ₹121.10, and over the past year, it has surged 129.13%, gaining ₹487.80.

First Games Plans to Challenge GST Demand

First Games plans to file a writ petition against the GST notice, challenging the retrospective application of the GST rules that changed from October 1, 2023. They will also seek interim relief, similar to other gaming companies, and contest the proposed ₹5,712 crore liability for the period from January 2018 to March 2023.

Conclusion

While the GST notice is significant, Paytm has clarified that its exposure is limited and the issue is industry-wide. Investors await further legal developments.

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