One 97 Communications Limited has informed the Exchange about General Updates regarding the Discontinued First Games Business GST Matter Has No Impact on the Company or Financials
PAYTM · price
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Paytm's subsidiary First Games Technology Private Limited (FGTPL) received notification that the Supreme Court upheld the constitutional validity of 28% GST levy on online gaming companies. The matter pertains to FGTPL's discontinued real money gaming business, which was shut down on August 25, 2025 following the promulgation of the Online Gaming Act, 2025. FGTPL had received a Show Cause Notice proposing GST liability of INR 5,712 crores for the period January 2018 to March 2023, which remains pending for adjudication. Paytm clarified that the carrying value of its investment in FGTPL is already nil in consolidated financials, and there is no incremental impact on the company's operations or financial statements. FGTPL is accounted as a joint venture with nil share of profit or loss.
This disclosure is positive for Paytm shareholders as it confirms zero financial impact from the GST dispute. The gaming subsidiary's investment has already been written down to nil, and the business was discontinued, isolating the company from this regulatory risk.