Policy · Professional & Local Services

Go Digit gets ₹384.4 crore income tax demand

By Startup Enthusiast · 25 March 2026

Date: 25 March 2026
Company: Go Digit
What it does: General insurance company
Kind: Policy
Sector: Professional & Local Services

What they do

Go Digit is a general insurance company offering motor, health, travel and other policies

What happened

The company received an income tax demand of ₹384.4 crore for AY24 and a separate GST demand of about ₹170 crore

Why it matters

Go Digit says both tax issues are industry-wide and plans to appeal or evaluate legal options; in Q3 FY26, Go Digit reported net profit of ₹140 crore, up…

The details

Go Digit received an income tax demand of ₹384.4 crore for assessment year 2024, including ₹100.4 crore in interest.
The tax demand arises from disallowance of IBNR and IBNER claims provisions.
It also includes disallowance under Section 40(a)(ia) for non-deduction of TDS on certain expenses.
Another disallowance is under Section 40(a)(i) for non-deduction of TDS on reinsurance premium paid to non-resident insurers.
Go Digit also received a GST demand notice of about ₹170 crore for alleged short payment of taxes over nearly five years.
Earlier in March 2026, the GST authority reaffirmed a demand of ₹154.80 crore plus penalty ₹15.48 crore and interest.
The GST demand relates to non-payment of GST on co-insurance premiums as follower and reinsurance commissions deducted from premiums ceded to domestic and foreign reinsurers.
Go Digit says both tax issues are industry-wide and plans to appeal or evaluate legal options.

The bigger picture

The Bombay High Court in July 2025 set aside an earlier GST demand and directed re-examination in light of GST Council decisions.
Go Digit's Q3 FY26 net profit rose 18% to ₹140 crore from ₹118.5 crore a year ago.
Gross written premium in Q3 FY26 was ₹2,909.2 crore, up 9% year-on-year.
Shares of Go Digit closed at ₹325 on BSE on 25 March 2026, up 0.88%.

About the business

Go Digit is a general insurance company offering motor, health, travel, home, and other insurance products.
It underwrites policies through its own network and partners.
The company reported gross written premium of ₹2,909.2 crore in Q3 FY26.
Net premium earned in Q3 FY26 was ₹2,160.1 crore, up 4% year-on-year.
Total income for Q3 FY26 was ₹2,497.7 crore, up 5% year-on-year.
Total expenses for Q3 FY26 were ₹2,386.1 crore, up 3% year-on-year.

What happens next

Go Digit plans to appeal or evaluate legal options against the income tax demand.
Go Digit plans to appeal or file a writ petition against the GST demand.

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