Shares of One 97 Communications Ltd, the parent company of Paytm, rose about 3% on 26 May after the company revealed that the Supreme Court had delayed a GST show cause notice against its private subsidiary First Games Technology for Rs 5,712 crore.

In an exchange filing on 24 May, Paytm stated that the Supreme Court had delayed the procedure based on a show cause notice issued by the Directorate General of GST Intelligence (DGGI) about the potential GST liability of Rs 5,712 crore against the company’s subsidiary First Games. 

“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 company cited the Supreme Court order as saying.

Paytm stated in a prior exchange filing in late April that First Games had received a show cause notice from the Directorate General of GST Intelligence (DGGI), which determined that GST liability should be assessed at 28% of the entire entry amount.  This is greater than the 18% GST paid on platform fees produced by gambling companies.

“This is an industry-wide issue where the GST department has sent notices to several gaming companies previously. This matter is currently pending with the Honourable Supreme Court, and they have granted interim relief by continuing further proceedings,” the company said.

Paytm further stated that First Games will file a writ case challenging the notice and its anticipated liability of Rs 5,712 crore for the period of January 2018 to March 2023.

Aside from the 26 May jump, Paytm shares have recently declined, down roughly 3% in the past month and more than 13% in 2025.

At 12:07 pm, the shares of Paytm were trading 2.54% higher at Rs 865.40 on NSE.

Curious About One 97 Communications Ltd? Ask the Analyst.

Ready to invest like a pro? Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists and insightful market analysis and much more!