Discontinued First Games Business- GST Matter has no impact on Company Operations or Financials.
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One 97 Communications (Paytm) disclosed that its subsidiary First Games Technology Private Limited (FGTPL) received Supreme Court ruling upholding the constitutional validity of 28% GST levy on online gaming companies. FGTPL had received a Show Cause Notice proposing GST liability of INR 5,712 crores for the period January 2018 to March 2023. However, the company clarified this has no impact on One 97 Communications as FGTPL's real money gaming business was already discontinued effective August 25, 2025, under the Promotion and Regulation of Online Gaming Act, 2025. The carrying value of investment in FGTPL is already nil in consolidated financial statements as of March 31, 2026.
No direct financial impact on One 97 Communications shareholders as the disputed subsidiary is discontinued with zero carrying value. The Supreme Court ruling against online gaming companies is contextual but does not affect Paytm's current operations or financials.