What’s Behind the GST Penalty on One 97 Communications & Paytm’s Response.
Published: February 5, 2025, 12:00 PM
In a surprising turn of events, Paytm’s parent company, One 97 Communications Ltd, has been hit with a hefty ₹1.19 crore penalty by the Central Goods and Services Tax (CGST) Department for alleged non-compliance with tax regulations.
But that’s not all Paytm’s CEO, Vijay Shekhar Sharma, has been personally fined ₹59.9 lakh in connection to the issue.
The alleged non-compliance revolves around the company’s tax invoice practices during the financial years 2020-21, 2021-22, and 2022-23. The CGST department claims that Paytm did not meet the required provisions of the Goods and Services Tax Act, which has now resulted in this substantial penalty.
However, One 97 Communications isn’t backing down. The company has made it clear that it believes the order is not legally tenable and is considering filing an appeal to challenge the penalty.
For a company as influential as Paytm, this development raises some significant questions about the intricacies of tax compliance for fintech giants. It’ a reminder that even the most successful startups need to stay on top of regulatory changes, especially in a landscape as complex as GST.
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