One 97 Communications Limited (OCL), the parent company of Paytm, on Wednesday informed stock exchanges that the Supreme Court‘s ruling upholding a 28% GST levy on online gaming companies has no bearing on its operations or financials.
The clarification pertains to First Games Technology Private Limited (FGTPL), a subsidiary of OCL that was incorporated on November 13, 2017, and was engaged in online real money gaming. FGTPL discontinued its real money gaming business with effect from August 25, 2025, pursuant to the promulgation of the Promotion and Regulation of Online Gaming Act, 2025.
The Supreme Court of India, on May 27, 2026, upheld that the 28% GST levy on online gaming companies is constitutionally valid and has statutory backing under the GST Act.
FGTPL had received a Show Cause Notice from GST authorities on April 28, 2025, with a proposed liability of ₹5,712 crore, along with applicable interest and penalties, for the period from January 2018 to March 2023. The notice remains pending for adjudication. The matter related to GST liability being computed at 28% on the total entry amount, as against 18% GST paid on the platform fee (revenue) generated by the gaming companies.
OCL said the carrying value of its investment in FGTPL in its consolidated financial statements as on March 31, 2026 is already nil, and accordingly, there is no incremental impact on OCL’s consolidated financial statements arising from the matter.
The company further noted that FGTPL is treated as a joint venture for group consolidation purposes under applicable accounting standards. Its revenues are therefore not consolidated into OCL’s financial statements, and the share of profit or loss under the equity method is nil in OCL’s consolidated profit and loss account for the financial year ended March 31, 2026.
