Shares of Paytm rose nearly 2 percent in early trade on May 26 after the company received a major relief from the Supreme Court regarding a GST dispute. In a stock exchange filing dated May 24, Paytm informed that the apex court has stayed a Rs 5,712 crore GST show cause notice issued to its gaming subsidiary, First Games Technology.
The notice was earlier served by the Directorate General of GST Intelligence (DGGI), which had argued that GST should be charged at 28 percent on the total entry amount collected by the platform. Currently, most gaming platforms are paying 18 percent GST only on the platform fee. Paytm clarified that this is an industry-wide issue, and many online gaming companies have received similar notices from the GST department.
The Supreme Court, in its interim order, has stayed all proceedings related to this notice until the final decision is taken in the main matter and other connected cases. Paytm further mentioned that First Games will be filing a writ petition to challenge the Rs 5,712 crore GST liability calculated for the period between January 2018 and March 2023.
Despite the jump in share price on May 26, Paytm stock has seen some pressure recently. It is down around 3 percent in the last one month and has fallen over 13 percent in 2025 so far.The Supreme Court, in an interim order, has suspended all proceedings pertaining to this notice until a final decision is made in the principal matter and the related cases. Paytm additionally added that First Games would be filing a writ petition to contest the Rs 5,712 crore GST payable calculated for the period from January 2018 to March 2023.
Even after the spike in the stock price on May 26, Paytm shares have faced some selling pressure in recent times. It has dipped around 3 percent in the past month and has declined over 13 percent year to date in 2025.
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Source: Moneycontrol
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