Paytm Gaming Unit Gets ₹5,008 Crore GST Relief

Paytm's parent company, One 97 Communications Ltd

, has announced major relief for its gaming subsidiary, First Games Technology Private Limited, after its proposed GST demand was reduced from ₹5,712 crore to ₹703.66 crore. The reduction amounts to approximately ₹5,008.34 crore, significantly lowering the tax demand relating to the period from April 2018 to March 2023. GST Demand: Before vs After Original Proposed Demand: ₹5,712 crore Revised GST Demand: ₹703.66 crore Reduction in Demand: ₹5,008.34 crore Period Covered: April 2018 to March 2023 Authority: Additional Commissioner of CGST, Noida The revised order was received by First Games on October 12, 2026. The demand also carries a penalty equivalent to the tax liability, along with applicable interest. Will This Impact Paytm Financially? One 97 Communications stated that the revised order would have no incremental financial impact on its consolidated financial statements. First Games is treated as a joint venture for consolidation purposes, and the carrying value of Paytm's investment in the entity was already nil as of March 31, 2026. What Happens Next? First Games is assessing its options under the relevant statutory provisions. The revised demand is a substantial reduction from the original amount, but it does not mean the entire tax liability has been cancelled. Investors can monitor further regulatory developments and any updates from Paytm regarding the matter. Disclaimer: This content is for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consider their risk profile before making any investment decision.