Go Digit General Insurance Limited has disclosed receiving a substantial income tax demand order of ₹3,84,43,19,480 from the Assistant Commissioner of Income-Tax for Assessment Year 2023-24. The company received this order on 25th March 2026 at 6:24 p.m. from the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2), Mumbai, under section 156 of the Income Tax Act, 1961.

Tax Demand Breakdown

The total demand comprises the principal tax amount along with interest charges under the Income Tax Act.

Primary Disallowances

The income tax authority made several adjustments to increase the company's taxable income, focusing on three main areas:

• Claims Provisions: Disallowance of provision of claims Incurred But Not Reported (IBNR) and claims Incurred But Not Enough Reported (IBNER)
• TDS on Expenses: Disallowance under Section 40(a)(ia) for non-deduction of TDS on certain expenses
• Reinsurance Premium: Disallowance under Section 40(a)(i) for non-deduction of TDS on reinsurance premium paid to non-resident insurance companies

Company's Response Strategy

The company emphasized that these disallowances primarily relate to industry-wide issues affecting the insurance sector. Go Digit General Insurance is currently evaluating legal advice on the implications of the order and intends to pursue an appeal or other appropriate legal actions against the assessment.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has indicated it will evaluate and make appropriate disclosures in its financial statements if required, based on the advice of its tax advisors.

Go Digit General Insurance has stated that based on legal counsel, it expects to challenge this assessment through the appropriate appellate channels while continuing to assess the potential financial implications of the order.

Go Digit General Insurance Limited has received a fresh order from tax authorities re-affirming a significant GST demand, marking a new development in an ongoing tax litigation matter that spans several years.

Order Details and Financial Impact

The company received the order copy on March 6, 2026, at 5:05 p.m. from the Office of Commissioner of GST & Central Excise, Chennai South Commissionerate. The order confirms substantial financial implications for the insurer:

Background and Previous Developments

This latest order follows a previous intimation dated July 4, 2025, when the Hon'ble High Court of Bombay had set aside the original demand of ₹154.80 crores and penalty of ₹15.48 crores, totaling ₹170.29 crores. The court had directed the Adjudicating Authority to decide the matters afresh in light of the decision of the GST Council and relevant circulars.

Nature of Tax Issues

The GST demand stems from two primary areas of non-compliance identified by the authorities:

• Non-payment of GST on co-insurance premium received as follower in co-insurance transactions
• Non-payment of GST on reinsurance commission deducted from reinsurance premium ceded to various Indian and Foreign reinsurers

Company's Response and Next Steps

Go Digit General Insurance has characterized this matter as an industry-wide issue affecting the broader insurance sector. The company has outlined its immediate response strategy:

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Regulations, providing comprehensive details about the communication received from tax authorities. The disclosure includes all material contents of the communication and expected financial implications, ensuring transparency with stakeholders about this significant development in the ongoing tax litigation matter.