The Bombay High Court has provided major relief to Go Digit General Insurance by setting aside a GST demand of Rs 170.29 crore raised by the Chennai South Commissionerate of GST and Central Excise. The demand included Rs 154.8 crore in alleged tax liabilities and Rs 15.48 crore in penalties for the period between July 2017 and March 2022.
According to a stock exchange filing, the order was issued on July 4. The High Court noted that the GST Council had already examined the broader industry-related issue and issued circulars addressing the same. The court has now instructed the tax department to reassess the matter by considering these guidelines and complete the process within three months.
This development comes shortly after Go Digit was listed on the stock exchange. The GST demand had been disclosed earlier in the company’s Red Herring Prospectus under material tax proceedings. Go Digit stated it is reviewing its legal options while waiting for the official copy of the court order.
Go Digit also clarified that the matter is part of an ongoing industry-wide issue impacting the insurance sector and that the High Court’s intervention currently removes any financial impact on the business.
Go Digit has shown strong financial growth, recording a 2.2 times jump in profits to Rs 116 crore in the last quarter of FY25. For the full fiscal year, profits increased by 133 percent to Rs 425 crore.
As of 11.25 AM, the company’s stock was trading at Rs 333.9 with a total market capitalisation of Rs 30,828 crore or approximately $3.6 billion.
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