Hi,@MuthuKasi-MSFT Welcome to Microsoft Q&A thanks for posting your question
Did you add the Service Principal to the workspace and grant the SPN access to the appropriate tables in the SQL Endpoint? Also, you don’t need a gateway to connect to the Fabric LH. The paginated report should just run directly against the SQL Endpoint.
If this is in a customer tenant, you have to make sure the tenant switch is enabled to "Allow for Service Principals for PBI APIs"
However SPN auth is not supported in GWs just yetService principal support to connect to data in Dataflow, Datamart, Dataset and Dataflow Gen 2 | Microsoft Fabric Blog | Microsoft Fabric
I hope this information helps
Regards
Geetha