In a major relief to Paytm-owned First Games, the Supreme Court has stayed proceedings related to a Rs 5,712-crore Goods and Services Tax (GST) notice issued by the Directorate General of GST Intelligence (DGGI), New Delhi.
The development was disclosed in a regulatory filing by One97 Communications, which owns the Paytm brand and its gaming subsidiary. The notice had been issued in April 2025, prompting First Games to file a writ petition before the apex court.
“We hereby inform you that First Games has informed us on May 24, 2025 at 10:44 am (IST) that in the writ petition …filed by First Games challenging the said SCN, the Hon’ble Supreme Court of India has on May 23, 2025 stayed the proceedings of the SCN,” One97 Communications said in the filing.
The tax dispute centers around the classification and taxation of real money gaming platforms under the GST regime—a contentious issue that has embroiled several players in the online gaming industry.
One97 Communications clarified that the GST matter is not unique to First Games but is part of a broader, industry-wide debate currently under judicial consideration. The apex court is already hearing similar cases involving multiple gaming platforms facing hefty tax demands under revised GST interpretations.
The interim stay provides breathing room for First Games and potentially signals a broader legal examination of how India’s tax authorities are treating the booming real money gaming sector.