In Fresh Tax Trouble, Paytm Gets Notice Of INR 3.73 Cr

Paytm parent One97 Communications has received a goods and service tax (GST) demand notice of INR 3.73 Cr from the Central Goods and Service Tax (CGST) department.

The notice, received yesterday (February 4), demands a GST of INR 3,73,67,581, which will be marked up with a penalty of INR 3.73 Cr, along with the applicable interest, bringing the total up to INR 7.47 Cr, as per the company’s filing.

One97 Communications has received the tax order for the financial year 2017-18 under Section 74 of the Goods and Services Tax Act, 2017.

The demand order has been received in respect of alleged wrong input tax credit availment by the company, the filing added.

“Based on its assessment and expert advice, the company believes that the demand is not maintainable and is evaluating all options, including filing an appeal against the order,” the fintech player said.

As of 09:25 AM, Paytm’s stock has jumped 2.3% to INR 799.45 per share, compared to its last close of INR 781.40, on February 4, while its market capitalisation currently stands at INR 51,053.48 Cr.

The shares of the company are set for a third straight session in green, if current gains hold.

This comes on the heels of Delhi goods and services tax (GST) authorities slapping a fine of INR 59.94 Lakh on Paytm founder and CEO Vijay Shekhar Sharma, as of February 3. Furthermore, the Joint Commissioner of Adjudication, CGST Delhi North, also imposed an additional penalty of INR 1.19 Cr on its parent One97 Communications for flouting tax norms.

Meanwhile, Blinkit parent Zomato, which has been plagued by GST demand notices in various states throughout the past year, has freshly received a GST demand notice of INR 5.9 Cr from the Haryana GST authorities.

In terms of its financial performance, the fintech major narrowed its consolidated net loss by 6% to INR 208.5 Cr in Q3 FY25 from INR 221.7 Cr in the same quarter last year. Its revenue from operations declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr, a year ago.

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