Paytm Share Price Soared Over 3% After Supreme Court Halts ₹5,712 Crore GST Proceedings

On Monday, 26, 2025, Paytm share price rose over 3%, reaching a day high of ₹874.15 at 2:20 PM after opening at ₹850.05 on BSE. The gain in Paytm share price follows the ruling by the Supreme Court of India. The apex court has put a temporary halt on proceedings related to a ₹5,712 crore GST show cause notice issued to First Games Technology Pvt Ltd, a subsidiary of One 97 Communications Ltd, the parent company of Paytm.

Supreme Court Provided Interim Relief

In a regulatory filing dated May 24, Paytm confirmed that the apex court granted interim relief through an order issued on May 23. This development follows a petition filed by First Games challenging the massive tax demand raised by the Directorate General of GST Intelligence (DGGI) for the period spanning January 2018 to March 2023.

The Supreme Court’s directive states: “Further proceedings of all the impugned show cause notices shall remain stayed till the final disposal of the main matter along with all the matters which are tagged.”

This stay order offers First Games a temporary reprieve from legal and financial pressures, allowing the company more time to build its defence without the risk of immediate enforcement or penalties.

The disputed GST demand is part of a broader regulatory scrutiny facing India’s online gaming sector. At the heart of the controversy is the government’s decision to levy 28% GST on the total entry amount collected by gaming platforms, as opposed to the industry’s stance that tax should be applied at 18% only on the platform’s commission or service fee.

Several other gaming companies have reportedly received similar notices, signalling a sector-wide investigation by the tax authorities. The outcome of these cases is being closely watched by industry stakeholders due to its potential to reshape the business model of online gaming in India.

Also Read: ITC Dividend 2025: Highest Payout in 5 Years – 5 Key Highlights

Paytm Q4FY25 Earnings Highlights

Paytm reported its Q4 FY25 financial results, with revenue from operations declining 16% year-on-year to ₹1,911 crore from ₹2,267 crore in Q4 FY24. However, the company significantly trimmed its net loss to ₹23 crore in the latest quarter—a sharp improvement from ₹536 crore in the same period last year, marking a 96% reduction.

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