Paytm’s First Games to Challenge GST Notice with Writ Petition Amid Ongoing Industry Dispute

Paytm’s gaming arm, First Games, has decided to fight a recent tax notice by filing a writ petition in court. The company received a notice from tax authorities demanding Goods and Services Tax (GST) payments. First Games believes the notice is unfair and plans to challenge it legally.

The GST notice is part of a larger dispute across India’s online gaming industry. Many gaming companies have received similar tax demands from the government. The authorities are asking these companies to pay GST at a much higher rate than before. They now want to charge GST on the full value of bets placed, rather than just on the platform fee or commission earned by the company.

First Games said it followed all current tax laws and paid the GST as required. The company has hired legal experts to prepare the writ petition, which it will file in a high court soon. By filing this petition, the company hopes to stop the tax department from taking further action until the court gives a clear decision.

Several other gaming firms are also facing large tax demands, and some have already taken legal action. The industry says the new tax rule is hurting business and may force smaller gaming startups to shut down. Many companies argue that the government should create clear and fair tax rules for online gaming, rather than applying harsh penalties.

Industry groups have asked the government to review the tax structure and talk with gaming companies before taking action. They want to protect jobs, investments, and innovation in the growing online gaming sector.

First Games’ decision to go to court adds more pressure on the government to resolve the issue. The company hopes the court will offer relief and set a clear example for the rest of the industry.

For now, the legal battle over GST in the gaming sector continues, and many companies are watching closely to see what happens next.