🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Related News

Paytm’s First Games faces Rs 5,712 Cr GST demand notice

EntrackrEntrackr · 2m ago
Paytm’s First Games faces Rs 5,712 Cr GST demand notice
Medial

Paytm’s First Games faces Rs 5,712 Cr GST demand notice First Games Technology Private Limited, a subsidiary of One 97 Communications Limited, has received a show cause notice from the Director General of GST Intelligence, Delhi (DGGI). According to a disclosure filed by Paytm with the National Stock Exchange (NSE), the notice proposes a liability of Rs 5,712 crore, along with applicable interest and penalties, for the period January 2018 to March 2023. The company stated that the notice pertains to an ongoing matter in the online gaming industry over the past 18 months, where GST liability has been calculated at 28% on the total entry amount, instead of 18% on the platform fees (revenue) collected by gaming companies. According to the disclosure, First Games will file a writ petition challenging the show cause notice (SCN), opposing the retrospective application of the October 1, 2023, GST amendment and earlier GST interpretations. It will also seek interim relief similar to that granted to others in the gaming industry. Paytm stated that the SCN will not impact its operations, as the carrying value of its investment in First Games was already nil in Paytm’s consolidated financial statements as of March 2024. Last month, Paytm also received a show cause notice from the Directorate of Enforcement (ED) against certain allegations attributed to Little Internet Pvt Limited (LIPL) and NearBuy India Pvt Ltd (NIPL). The development comes ahead of Paytm’s Q4 results. During the third quarter of the previous fiscal year (Q3 FY25), its revenue from operations stood at Rs 1,828 crore, with a loss of Rs 208 crore in the same period.

Paytm gets relief as Supreme Court stays Rs 5,712 Cr GST notice

EntrackrEntrackr · 1m ago
Paytm gets relief as Supreme Court stays Rs 5,712 Cr GST notice
Medial

Paytm gets relief as Supreme Court stays Rs 5,712 Cr GST notice. In its order, the apex court directed, “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 Supreme Court of India has stayed the proceedings of a Rs 5,712 crore GST Show Cause Notice (SCN) issued to First Games Technology Private Limited, a subsidiary of One 97 Communications Ltd (Paytm). Paytm shared the update in a regulatory filing on May 24, after the Supreme Court issued an interim order on May 23. The order came in response to a petition by First Games, which challenged a GST notice from the Directorate General of GST Intelligence (DGGI) for the period from January 2018 to March 2023. In its order, the apex court directed, “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 stay gives Paytm’s gaming arm temporary legal relief and more time to defend its case without facing immediate penalties. Earlier, Paytm said the notice is part of an ongoing issue in the online gaming industry. The disagreement is about GST being charged at 28% on the full entry amount, while gaming companies believe it should be 18% only on their actual earnings from platform fees. The SCN is part of a broader industry-wide probe by the GST department, which has issued similar notices to several gaming companies. The matter is being closely monitored by stakeholders across the online gaming sector. Paytm's operating revenue fell by 16% year-on-year to Rs 1,911 crore in the fourth quarter of FY25, down from 2,267 crore in the same quarter of FY24. However, the Noida-based company narrowed its losses to 23 crore in Q4 FY25, a 96% reduction from 536 crore in Q4 FY24.

Download the medial app to read full posts, comements and news.