Income Tax Dept Slaps INR 384 Cr Demand on Go Digit General Insurance

A tax demand of INR 384 crore, including interest of INR 100 crore for the Assessment Year (AY) 2023-24, was imposed on Go Digit General Insurance by an Income Tax Order dated March 25, 2026. The majority of the changes are related to challenges that affect the entire sector. These include rules for the disallowance of claims (IBNR/IBNER) and for TDS non-deductions.

In order to potentially challenge the decision, the corporation is presently considering its legal alternatives. The business also promised to review its financial accounts and include any necessary disclosures therein. This news follows the company's receipt of a GST demand notice for almost INR 170 Cr, which alleges underpayment of taxes spanning nearly five years. The notification was sent out just weeks ago.

Go Digit Under the Radar of Taxation Authorities

The company was served with a new order earlier this month by the Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate, which reaffirmed a demand for INR 154.80 Cr. in GST. Along with the relevant interest under the CGST Act, the order included a penalty of INR 15.48 Cr. The claim covers the time frame from July 2017 to March 2022.

It mainly concerns the purported failure to pay GST on reinsurance fees withheld from premiums given to domestic and overseas reinsurers as well as co-insurance premiums received as a follower in such transactions. In July 2025, the Bombay High Court ordered the tax authority to reconsider the case in view of judgements made by the GST Council and related circulars. Hence, setting aside the previous demand. This new development followed that order. In addition, Digit has previously stated that the problem affects the entire business and that it is exploring its legal options, which may include appealing the decision or submitting a writ petition.

Current Financial Dynamics of Go Digit

In terms of money, Go Digit's net profit spiked 18% in Q3 FY26 from INR 118.5 Cr to INR 140 Cr. Gross written premium for the reviewed quarter was INR 2,909.2 Cr, an increase of 9% year over year for the company.

Concurrently, quarterly net premium written fell 4% year-on-year to INR 2,148.2 Cr. The company saw a 4% year-over-year increase in net premium earned (NPE) to INR 2,160.1 Cr. Revenue during the third quarter of fiscal year 26 was INR 2,497.7 Cr, an increase of 5% year over year. Total expenses increased by 3% year-on-year to INR 2,386.1 Cr.