Go Digit General Insurance has received an order from the Adjudicating Authority reaffirming the original GST demand of ₹154.80 crore, along with a penalty of ₹15.48 crore, totaling approximately ₹170.29 crore. This demand relates to an industry-wide issue concerning non-payment of GST on co-insurance premiums and reinsurance commissions for the period July 2017 to March 2022. The company plans to appeal the order.
Reaffirmation of Significant GST Demand
Go Digit General Insurance Limited has announced an update regarding a major tax litigation matter following a prior directive from the Hon’ble High Court of Bombay. The company received an order copy on March 6, 2026, from the Adjudicating Authority.
This order reaffirms the original GST demand previously raised by the Office of Commissioner of GST & Central Excise, Chennai South Commissionerate. The key figures confirmed in the new order are:
- GST Demand: ₹1,54,80,63,840/- (Rupees One Hundred Fifty-Four Crore Eighty Lakh Sixty-Three Thousand Eight Hundred Forty Only).
- Penalty Levied: ₹15,48,45,482/- (Rupees Fifteen Crore Forty-Eight Lakh Forty-Five Thousand Four Hundred Eighty-Two Only).
- Interest: Applicable under Section 50 of the CGST Act, 2017.
Applicable Period and Context
The financial implications confirmed by the authority pertain to the period spanning from July 2017 to March 2022. The communication explicitly notes that the underlying issue is industry-wide in nature, involving the non-payment of GST on co-insurance premiums received and GST on reinsurance commissions deducted.
Company Response and Next Steps
The expected financial impact is detailed as the total demand, penalty, and interest outlined above. However, the company states that there is no impact at this stage on the financial position, as this is an ongoing dispute. The management is currently evaluating the legal advice received regarding the order’s implications.
In response to the reaffirmed order, the Company has confirmed its intention to take necessary legal recourse. The planned action includes pursuing an appeal or evaluating any other appropriate actions against the order, which may involve the filing of a writ petition.
Source: BSE
