Go Digit Faces ₹384 Cr Demand Notice From Income Tax Dept
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Insurtech major Go Digit has received a tax demand worth ₹384.4 Cr, including applicable interest of ₹100.4 Cr, from the Income Tax (IT) department’s assessment unit for the assessment year 2023-24 (AY24).
The tax demand primarily on account of:
- Disallowance of provision of claims Incurred But Not Reported (IBNR) and claims Incurred But Not Enough Reported (IBNER).
- Disallowance under Section 40(a)(ia) of the Act for non-deduction of TDS on certain expenses.
- Disallowance under Section 40(a)(i) of the Act for non-deduction of TDS on reinsurance premium paid to non-resident insurance companies.
Go Digit said that the aforementioned disallowances primarily relate to industrywide issues. Thus, it plans to pursue an appeal with Appellate authorities or evaluate against other legal options.
“The company will also evaluate and make appropriate disclosure in its financial statements, if required,” the company said.
The development comes just weeks after the company received a GST demand notice of around ₹170 Cr for alleged short payment of taxes over a nearly five-year period.
Earlier this month, the company had received a fresh order from the Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate reaffirming a GST demand of ₹154.80 Cr, along with a penalty of ₹15.48 Cr and applicable interest under the CGST Act.
The demand pertains to the period July 2017 to March 2022 and relates primarily to alleged non-payment of GST on co-insurance premiums received as a follower in co-insurance transactions and reinsurance commissions deducted from premiums ceded to domestic and foreign reinsurers.
The development follows a Bombay High Court order in July 2025 that had set aside the earlier demand and directed the tax authority to re-examine the matter in light of GST Council decisions and related circulars.
Further, Digit had said that the issue was industry-wide and that it is currently evaluating legal options, including filing an appeal or a writ petition against the order.
On the financial front, Go Digit’s net profit zoomed 18% to ₹140 Cr in Q3 FY26 from ₹118.5 Cr. The company’s gross written premium rose 9% YoY to ₹2,909.2 Cr during the quarter under review. Meanwhile, net premium written declined 4% YoY to ₹2,148.2 Cr during the quarter. Net premium earned (NPE) stood at ₹2,160.1 Cr, up 4% YoY.
The company’s total income in Q3 FY26 stood at ₹2,497.7 Cr, up 5% YoY. Meanwhile, total expenses grew 3% YoY to ₹2,386.1 Cr.
Shares of Go Digit ended Wednesday’s trading session 0.88% higher at ₹325 on the BSE. Notably, stock exchanges remained closed on Thursday on account of Ram Navami.
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