The Allahabad High Court has granted a significant relief to Paytm, as it stays an INR 1,081 crore demand notice for Goods and Services Tax (GST) that was issued to the company. The court has ordered the demand notice to be put on hold until further information is disclosed.
The GST demand notice, issued by the Central Board of Indirect Taxes and Customs (CBIC), claimed that Paytm had failed to deposit the correct amount of GST for the financial year 2017-2018. Paytm had contested the notice, arguing it lacks justifiable grounds of merit.
In its order, the Allahabad High Court acknowledged that Paytm had raised serious questions about the validity of the demand notice and noted that there were several discrepancies in the calculations made by the CBIC. The court also observed that the demand notice could have serious financial implications for the company and that it was in the interest of justice to stay the notice until a final decision was made.
The stay order is seen as a huge win for Paytm and a testament to its commitment to ensuring that all of its financial transactions comply with the law. The company has been at the forefront of the digital payment revolution in India and has played a vital role in making digital transactions more accessible to the masses.
The case will be heard in the coming weeks, and a final decision is expected to be made soon. Millions of Paytm users will closely monitor the developments in the case and hope for a favourable outcome for the company.