The Goods and Services Tax (GST) demand on First Games Technology, a subsidiary of One 97 Communications, the parent of Paytm, has been reduced to ₹703.66 crore from the earlier proposed liability of ₹5,712 crore for the period from April 2018 to March 2023, according to the company's stock-exchange disclosure.
The revised order was issued by the Additional Commissioner of Central Goods and Services Tax (CGST), Noida, Uttar Pradesh, and was received by First Games on October 12, 2026, the company said. The demand also carries a penalty equivalent to the tax liability, along with applicable interest.
One 97 Communications said the order would have no incremental financial impact on the company. First Games is treated as a joint venture for group consolidation purposes, meaning its revenue is not consolidated in the parent's financial statements. Its share of profit or loss under the equity method was nil in the consolidated profit and loss account for the financial year ended March 31, 2026.
The carrying value of Paytm's investment in First Games was also nil as of March 31, 2026.
The original show-cause notice, issued on April 28, 2025, had proposed a GST liability of ₹5,712 crore, with interest and penalties payable separately. The revised demand relates to the same tax period.
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First Games has discontinued its real-money gaming operations following the enactment of the Promotion and Regulation of Online Gaming Act, 2025. Its financial statements for the year ended March 31, 2026, were prepared on a liquidation basis.
One 97 Communications said First Games is evaluating its options under the relevant statutory provisions following the revised order.