Supreme Court Halts ₹5,712-Crore GST Notice Against Paytm’s First Games

In a significant relief for Paytm’s gaming arm, First Games, the Supreme Court has stayed a ₹5,712-crore GST notice issued by the Directorate General of GST Intelligence (DGGI). This development, announced on May 24, 2025, underscores an ongoing industry-wide tax dispute in the online gaming sector. One97 Communications, Paytm’s parent company, clarified that the issue isn’t exclusive to First Games and is under review by the apex court. Let’s break down the key points!

Key Highlights of the Case

• Notice Issued: DGGI sent a show cause notice (SCN) to First Games in April 2025, demanding ₹5,712 crore for GST liability from January 2018 to March 2023.
• Supreme Court’s Ruling: On May 23, 2025, the court stayed the SCN proceedings, providing temporary relief to First Games.
• Industry-Wide Issue: The tax dispute revolves around applying 28% GST on total entry amounts versus 18% on platform fees, affecting multiple gaming firms.
• Next Hearing: The case is tagged with others, with a key hearing scheduled for March 18, 2026, to address GST applicability.

Case Overview

Aspect	Details
Company	First Games (One97 Communications)
GST Demand	₹5,712 crore
Period	Jan 2018 - Mar 2023
Court Action	Stay granted on May 23, 2025

This stay offers First Games breathing space while the Supreme Court deliberates on the broader GST taxation issue, potentially shaping the future of India’s online gaming industry.

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