26 May , 2025 By : Debdeep Gupta
Shares of digital platform Paytm gained nearly 2 percent in the early trade on May 26 after a company filing said that the Supreme Court has stayed a GST show cause notice worth Rs 5,712 crore against its private subsidiary First Games Technology.
In the exchange filing shared on May 24, Paytm said the Supreme Court has stayed the proceeding on a show cause notice issued by the Directorate General of GST Intelligence (DGGI) over the proposed GST liability of Rs 5,712 crore against the company's subsidiary First Games. "Further proceedings of all the impugned show cause notices shall remain stayed till the final disposal of the main matter along with all the matters which are tagged," the company cited the Supreme Court order as saying.
In an earlier exchange filing released in late April, Paytm had said that First Games had received the show cause notice wherein the Directorate General of GST Intelligence (DGGI) had taken the view that GST liability should be calculated at 28 percent on the total entry amount. This is higher than the 18 percent GST paid on the platform fee generated by the gaming companies. "This is an industry-wide issue where the GST department has sent notices to several gaming companies previously. This matter is currently pending with the Honourable Supreme Court and they have granted interim relief by staying further proceedings," the company had said.
Paytm also said First Games will be filing a writ petition challenging the notice and its proposed liability of Rs 5,712 crore for the period from January 2018 to March 2023.
Aside of the surge seen on May 26, Paytm shares have seen a decline recently, down nearly 3 percent in the past one month, and over 13 percent in 2025 so far.
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