Paytm, its CEO fined with GST penalty over alleged non-compliance

Fintech firm Paytm and its chief executive officer (CEO) Vijay Shekhar Sharma have been fined by the Central Goods and Services Tax (CGST) Department over alleged non-compliance in the issuance of tax invoices by the company to its customers.

 

One97 Communications, which operates the Paytm brand, was fined Rs 1.19 crore in relation to the penalty, while Sharma was fined Rs 59.94 lakh.

 

The Noida-based company said it was evaluating its options, including an appeal against the order issued by the Joint Commissioner, CGST Delhi North.

 

“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,” it said.

 

 

It added that there was no impact on operations or other activities of the firm.

 

In October 2023, the Reserve Bank of India (RBI) imposed a monetary penalty of Rs 5.39 crore on the firm’s associate entity, Paytm Payments Bank, for violating Know Your Customer (KYC) norms, among others.

 

The company narrowed its losses to Rs 208.3 crore in the third quarter of the financial year 2025 (Q3FY25), down from Rs 219.8 crore in Q3FY24.

 

The loss follows a profitable September quarter when the company reported a profit of Rs 928.3 crore, driven by the sale of its movie and ticketing business to Zomato.

 

The Noida-based company’s revenue declined 35.9 per cent to Rs 1,827.8 crore in the quarter from Rs 2,850.5 crore in the corresponding quarter last year. Sequentially, revenue rose 10.1 per cent from Rs 1,659.5 crore in Q2FY25.