The Supreme Court stayed a massive Rs 5,712 crore GST notice sent to Paytm’s gaming arm, First Games. This case could impact the entire real-money gaming sector in India.
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NEW DELHI: In a big relief to Paytm’s gaming platform, First Games, the Supreme Court of India has stopped the GST notice worth Rs 5,712 crore that was sent by the tax authorities earlier. This information was shared in a regulatory filing on Saturday.
The notice was originally issued by the Directorate General of GST Intelligence (DGGI), New Delhi, in April 2025. The notice was a Show Cause Notice (SCN), which is a legal notice sent by authorities asking why tax should not be collected from a company.
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First Games, which is owned by One97 Communications (the same company that runs the Paytm brand), had gone to the Supreme Court to challenge this huge tax notice. The company argued that the matter needed to be looked into carefully by the top court, as it affects the whole real-money gaming industry in India.
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In the official filing, the company shared,
“We hereby inform you that First Games has informed us on May 24, 2025 at 10:44 am (IST) that in the writ petition …filed by First Games challenging the said SCN, the Hon’ble Supreme Court of India has on May 23, 2025 stayed the proceedings of the SCN.”
This means that the highest court in the country has temporarily stopped the tax department from taking any action on the GST notice sent to First Games until the court gives a final decision.
One97 Communications also mentioned that the problem is not only about their gaming platform.
According to the company, the tax matter is an industry-wide issue and not limited to First Games and the matter is being heard by the top court.
This legal case is being watched closely, as the decision could affect many other companies in the online gaming and fintech industry. The final judgement by the Supreme Court could decide how GST is applied to real-money games in India.
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