Paytm’s First Games to challenge Rs 5,712 crore GST notice

Paytm’s parent company, One97 Communication Ltd (OCL), has said that its subsidiary, First Games Technology Private Limited, received a show-cause notice (SNC) from the Directorate General of GST Intelligence (DGGI).

The notice, received on April 28, 2025, relates to an ongoing Goods and Services Tax (GST) matter that has been under review across the online gaming industry for over 18



months.

The DGGI has taken the position that GST should be levied at 28 per cent on the total entry amount, instead of the 18 per cent GST currently paid on the platform fee or revenue earned by gaming companies.

In its stock exchange filing, Paytm emphasised that this is an industry-wide issue, and that several other online gaming operators have received similar notices in the past.