A Supreme Court stay has halted a massive ₹5,712 crore GST notice that First Games owned by Paytm received thus providing temporary protection to the fintech company. The Directorate General of GST Intelligence (DGGI) sent the original notice in April 2025 to One97 Communications for its real-money gaming platform First Games.
One97 Communications released a regulatory filing on May 24, 2025 which confirmed the Supreme Court issued a stay order for the show cause notice (SCN) on May 23. The tax authorities received a writ petition from First Games which led to the Supreme Court granting a stay of the tax notice.
The tax dispute affects First Games alone because it represents a widespread problem that affects all online gaming and fintech operations. The judicial review of this matter continues to show the increasing regulatory challenges that digital platforms face when conducting real-money transactions.
The gaming industry including Paytm First Games faces mounting tax pressure because of revised GST norms which impose significant obligations on companies operating in this sector. Through the Supreme Court stay order the legal team of First Games gained essential time to present their case and defend their position before any tax enforcement actions can proceed.
The ongoing legal proceedings attract close observation from industry stakeholders because they will determine future tax regulations for Indian online gaming companies.
