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.

Go Digit General Insurance Limited has scheduled an analyst and institutional investor presentation for February 16, 2026, according to a regulatory filing submitted on February 15, 2026. The presentation materials have been made available on the company's investor relations website ahead of the scheduled meeting.

Strategic Growth Framework

The company has outlined its transition from market-led to choice-led growth, driven by deliberate capital and risk decisions. Go Digit's strategic framework focuses on four key areas: capital allocation to ROE-positive opportunities, risk segmentation and pricing using data, selective product launches where outcomes can be controlled, and selective channel scaling rather than uniform expansion.

Business Performance Metrics

The presentation reveals strong performance across key business segments from April 2025 to December 2025. The Motor segment achieved 15.3% GDPI growth, while Corporate Lines Overall recorded 14.7% growth during this period.

Commercial Lines Strategy

Go Digit positions its Commercial Lines as an outcome-managed growth engine, acknowledging that severity dominates frequency in this segment where one large loss can erode years of profits and capital. The company adopts different strategies based on market cycles, with horizontal expansion during soft markets and rapid scaling during favorable hard market conditions.

Technology-Driven Claims Management

The company has implemented significant technological improvements in its claims processing capabilities. Motor Own Damage claims have shown improved efficiency metrics, with End-to-End TAT reducing from 17.8 days in December 2024 to 16.8 days in December 2025.

Motor Third Party Claims Framework

The presentation details Go Digit's comprehensive approach to Motor Third Party claims management, emphasizing active steering of every TP claim and decisions shaped by facts and evidence rather than petitions. The company has implemented a pre-decision checklist system focusing on accident genuineness, vehicle involvement verification, evidence alignment, and early settlement opportunities where liability is clear.

The analyst presentation demonstrates Go Digit's commitment to disciplined growth and operational excellence across its insurance portfolio, with particular emphasis on technology-driven efficiency improvements and risk-based decision making.