Go Digit General Insurance Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
GODIGIT · price
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Go Digit General Insurance has received an unfavorable order from the Commissioner of GST & Central Excise, Chennai South, reaffirming an earlier tax demand of Rs. 154.80 crore along with a penalty of Rs. 15.48 crore and interest under Section 50 of the CGST Act. The demand relates to non-payment of GST on co-insurance premiums received as a follower and on reinsurance commission deducted from premiums ceded to reinsurers, covering the period July 2017 to March 2022. The matter was previously set aside by the Bombay High Court in July 2025, which had directed fresh adjudication, and the new order follows that re-adjudication. The company has stated this is an industry-wide issue and is evaluating legal options, including filing an appeal or writ petition. The company has noted 'no impact at this stage' pending the appeal process.
Near-term impact is limited as the company plans to appeal and the matter is described as industry-wide. However, if the appeal and any writ petition fail, the total potential exposure of roughly Rs. 170 crore plus interest could be material to the company's financials. Investors should monitor the appeal outcome closely as it represents a contingent liability.