One 97 Communications, on Tuesday said the proposed GST liability on its subsidiary First Games Technology has been reduced to ₹703.66 crore from ₹5,712 crore, following a demand order issued by the Additional Commissioner of CGST, Noida.
The order relates to the period from April 2018 to March 2023 and imposes an additional penalty equivalent to the tax liability, along with applicable interest, the company said in a regulatory filing.
First Games Technology had received a show-cause notice from the GST department on April 28, 2025, proposing a tax liability of ₹5,712 crore, excluding applicable interest and penalties.
The demand order was received by the subsidiary on October 12, 2026. The company said First Games Technology was evaluating the appropriate course of action under the relevant statutory provisions.
Paytm said there would be no incremental financial impact on the company arising from the order. It noted that First Games Technology is treated as a joint venture for group consolidation purposes, with its investment carrying value already reduced to nil in the consolidated financial statements as of March 31, 2026.
The company also said First Games Technology discontinued its real-money gaming operations following the Promotion and Regulation of Online Gaming Act, 2025, and its financial statements for the year ended March 31, 2026, had already been prepared on a liquidation basis.
