New-age general insurance company Go Digit General Insurance Ltd on Saturday (March 7) said it has received an order from the Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate, confirming a GST demand of ₹154.80 crore along with a penalty of ₹15.48 crore and applicable interest under Section 50 of the CGST Act, 2017.
The company received a copy of the order on March 6, 2026. The demand pertains to the period from July 2017 to March 2022. The order follows re-adjudication of the matter.
Earlier, the Bombay High Court had set aside the GST demand of ₹154.80 crore and the penalty of ₹15.48 crore, aggregating to ₹170.29 crore, and directed the adjudicating authority to decide the matter again in accordance with the GST Council’s decision and related circulars.
Following the fresh adjudication, the tax authority has confirmed the GST demand of ₹154.80 crore and imposed a penalty of ₹15.48 crore along with applicable interest.
The issue relates to alleged non-payment of GST on co-insurance premiums received as a follower in co-insurance transactions. It also involves alleged non-payment of GST on re-insurance commission deducted from re-insurance premium ceded to Indian and foreign reinsurers. The company said the matter is an industry-wide issue.
Go Digit said it is evaluating legal advice on the implications of the order and will pursue an appeal or take other appropriate legal steps, including filing a writ petition. The insurer added that there is no impact at this stage arising from the order.
