Shares of Paytm jumped almost 10% during the intraday trading today to INR 687.3 apiece on the BSE
The rally came after the GST Council failed to reach a decision on imposing a 18% GST on payment aggregators on UPI transactions under INR 2,000
This comes at a time when Paytm is looking to reapply for a PA licence after getting the Centre’s nod to invest INR 50 Cr in its payments arm
Shares of Paytm
jumped almost 10% during the intraday trading today (September 10) to INR 687.3 apiece on the BSE amid strong trading volumes and ambiguity around the introduction of GST on small digital payments.
However, the stock shed some of the gains and was trading 4.6% higher at INR 657 apiece on the BSE at 1:39 PM.
By the time of publishing the story, nearly 3 Cr Paytm shares had cumulatively changed hands on the NSE and BSE as compared to the 20-day average volume of 90.3 Lakh.
The rally in Paytm share prices could also have been fueled by the GST Council’s failure to reach a decision on imposing a 18% GST on payment aggregators on UPI transactions under INR 2,000. Reports suggest that the matter will be referred to a fitment committee.
It is pertinent to note that payment aggregators such as Paytm, Razorpay, Cashfree, Pine Labs, BillDesk and CCAvenue charge merchants for processing digital transactions under INR 2,000.
Some of these players have reportedly received GST demand orders from authorities on the fee they collected.
This comes at a time when Paytm has received approval from the Centre, the finance ministry and the department of financial services to invest INR 50 Cr in its payments arm, Paytm Payments Bank.
The company is now looking to apply for a payment aggregator licence with the Reserve Bank of India.
Paytm incorporated Paytm Payment Services to secure a PA licence. While the company initially tried to get the PA licence in 2020, the RBI directed it to resubmit the application to ensure compliance with the FDI rules.
The Vijay Shekhar Sharma-led company saw its consolidated net loss widen 134% year-on-year to INR 840.1 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25) as compared to INR 358.4 Cr in the year ago-period.
Revenue from operations declined 36% in Q1 FY25 to INR 1,502 Cr from INR 2,342 Cr in the corresponding quarter last year.
Despite mounting losses, the stock has jumped 27% in the last month and surged over 77% in the past six months.
