First Games Technology Hit with 5,712 Crore GST Demand Notice:

First Games Technology Hit with 5,712 Crore GST Demand Notice First Games Technology, owned by the same company that owns Paytm, has received a tax notice for 5,712 crore rupees from the GST department. The notice claims the gaming company should have paid 28% tax on all money received through their platform, not just the 18% they paid on their service fees.

First Games intends to oppose this notice in court, contending that:

• This is an industry-wide issue affecting many gaming companies
• The Supreme Court has already put similar cases on hold
• The tax department is trying to apply a new rule from October 2023 to past years (2018-2023)

This comes after the parent company also received a separate notice in March for alleged foreign exchange violations worth 611 crore rupees related to two company acquisitions. First Games says these issues won't affect their day-to-day operations.