Paytm’s gaming firm gets Rs 5,712 cr GST notice, will seek relief

First Games Technology, a subsidiary of the company that owns fintech major Paytm, has got a notice from the Directorate General of GST Intelligence (DGGI) claiming a proposed liability of Rs 5,712 crore along with interest and penalties.

The show-cause notice, received by the gaming company on Monday, is for the period between January 2018 and March 2023. First Games, a unit of One97 Communications Ltd. (OCL), said that the DGGI has taken the view that GST liability should be computed at 28 per cent on the total entry amount, as against 18 per cent paid on platform fee or revenue generated by gaming companies.