Go Digit gets relief in Rs 170 Cr GST dispute; Bombay HC directs fresh review
The demand, originally raised by the Chennai South Commissionerate of GST and Central Excise, included a tax liability of Rs 154.80 crore and an additional penalty of Rs 15.48 crore.
Go Digit General Insurance has received a significant reprieve in a tax dispute worth over Rs 170 crore after the Bombay High Court overturned a previous demand raised by tax authorities and ordered a fresh review.
The demand, originally raised by the Chennai South Commissionerate of GST and Central Excise, included a tax liability of Rs 154.80 crore and an additional penalty of Rs 15.48 crore. The court has now asked the adjudicating authority to reassess the matter in light of circulars and decisions already issued by the GST Council.
“This matter primarily relates to an industry-wide issue,” the company said in a stock exchange filing. “The High Court has directed the adjudicating authority to reconsider the case based on the GST Council’s guidance.”
Go Digit said it is currently evaluating legal advice on the implications of the order.
The period under review in this tax matter spans from July 2017 to March 2022. The company clarified that there are no financial implications at this stage, and no penalties or restrictions have been imposed following the order.
Go Digit’s stock is listed on both the BSE and NSE under the ticker GODIGIT. The development comes after the insurer went public in May 2024, with disclosures of the tax dispute made in its IPO documents.
The matter now returns to the adjudicating authority, which has been asked to conclude the fresh review within three months.
Go Digit reported a 119.5% surge in profit after tax (PAT) at Rs 115.61 crore for the quarter ended March 31 from Rs 52.66 crore a year earlier.
Gross premiums written for the quarter rose 10.29% to Rs 2,576.38 crore compared to Rs 2,335.91 crore in the same period last year. It is the total total premium amount collected by the insurer before any deduction including new business and renewals during a period.
It’s the topline for an insurer. Meanwhile, the insurtech company's total income climbed 6.04% to Rs 2,855.18 crore from Rs 2,692.50 crore. Total expenses for the period increased 5.08% YoY to Rs 2,426.12 crore.
Edited by Affirunisa Kankudti