SC Upholds 28% GST on Online Gaming, Paytm Says No Financial Impact on Operations

First Games Technology Private Limited (FGTPL), which is a subsidiary company of One 97 Communications Limited (Paytm), has informed the company that the Supreme Court on May 27, 2026, upheld the validity of the 28% GST on online gaming companies. The Court ruled that the levy is legally valid and supported under the GST law.

This is in continuation of the company’s earlier disclosures dated April 28, 2025 and May 24, 2025, and is being made in compliance with SEBI’s disclosure regulations.

The company clarified that this matter is related only to FGTPL’s discontinued online real money gaming business and has no impact on the operations or other business activities of One 97 Communications Limited.

FGTPL was started on November 13, 2017, and was involved in online real-money gaming. The company shut down this business from August 25, 2025, after the promulgation of the “Promotion and Regulation of Online Gaming Act, 2025”.

FGTPL had received a GST Show Cause Notice on April 28, 2025, demanding Rs 5,712 crore, which includes interest and penalties, for the period between January 2018 and March 2023. The matter is still pending for adjudication.

The company also said that the value of OCL’s investment in FGTPL has already been reduced to nil in its consolidated financial statements as of March 31, 2026. Therefore, this matter will not have any additional financial impact on OCL.

FGTPL is treated as a joint venture under accounting standards. Its revenue is not added to OCL’s financial statements. The company also said that FGTPL did not add any profit or loss to OCL’s financial results for FY 2025-26.