One 97 Communications: GST demand on subsidiary reduced to ₹703.66 Cr

One 97 Communications Ltd (Paytm) announced that its subsidiary, First Games Technology Private Limited (FGTPL), has received a revised demand order from the GST department. The proposed GST liability has been reduced from INR 5,712 crore to INR 703.66 crore (Indian Rupees Seven Hundred Three Crore and Sixty Six Lakh) for the period April 2018 to March 2023, along with applicable penalty and interest. FGTPL is evaluating its next steps. The company stated that this order will have no incremental financial impact on One 97 Communications as FGTPL is treated as a joint venture and its financials are not consolidated. The carrying value of the investment in FGTPL is already nil.