Paytm parent hit with Rs 1.9 Cr GST penalty, plans to challenge order

One 97 Communications Ltd, the parent company of fintech giant Paytm, has been slapped with a Rs 1.19 crore penalty by the Central Goods and Services Tax (CGST) Department for alleged non-compliance with tax regulations.

The company, however, maintains that the order is not legally tenable and is evaluating its options, including filing an appeal.

"The Company, based on its assessment and expert advice, believes that the penalty demand is not maintainable and is evaluating all options, including filing an appeal against the order," Paytm said in an exchange filing.

According to a stock exchange filing on Tuesday, Paytm received the penalty demand order on February 3, 2025. The tax department claims that the company violated provisions of the Goods and Services Tax Act, 2017, specifically related to the issuance of tax invoices for financial years 2020-21, 2021-22, and 2022-23.

In addition to the penalty on the company, CEO Vijay Shekhar Sharma has been personally fined Rs 59.9 lakh.

Last year in August, One 97 Communications was ordered by the Office of Collector of Stamps, New Delhi, to pay a penalty of Rs 47.12 lakh for not paying stamp duty on the allotment of equity shares in previous years.

Similarly, the GST department carried out a raid on a fully-owned subsidiary of insurtech giant PB Fintech, Policybazaar's parent entity, on December 13.

According to an exchange filing, the company stated that the Directorate General of GST Intelligence, Gurugram zonal unit, conducted a search and inquiry related to certain vendors associated with one of its subsidiaries.