SUMMARY
- Go Digit faces more than INR 26.5 lakh in GST demands and penalties across multiple states due to compliance issues from 2019-2020.
- The company may appeal against the orders but expects the financial impact to be minimal.
- Go Digit’s PAT rose by 74% in Q1 FY25, reflecting its resilience amidst regulatory hurdles.
Insurtech firm Go Digit General Insurance has received tax demand and penalty orders totaling over INR 26.5 lakh from GST authorities in several states. The company, in its regulatory filing on September 1, indicated that the demands relate to compliance issues across different regions, covering the period from April 2019 to March 2020.
The Office of the Joint Commissioner in Patna fined Go Digit INR 20,000 for delaying the payment of the differential IGST amount. Meanwhile, the Office of the Assistant Commissioner in Pune issued a demand order of INR 9.38 lakh and imposed a penalty of INR 99,172, which stemmed from a recalculation of the eligible input tax credit amount.
Additionally, the Office of the Superintendent in Ahmedabad South, Gujarat, charged Go Digit with a GST demand of INR 14.48 lakh and a corresponding penalty of INR 1.44 lakh. The company has indicated that the financial impact of these tax liabilities is not expected to be significant. However, it is considering filing appeals against the orders issued by the tax authorities.
Go Digit is not the only company facing such tax scrutiny. Recently, Zomato was handed a GST demand and penalty of INR 4.59 crore by authorities in Tamil Nadu and West Bengal. Go Digit’s recent IPO on the Bombay Stock Exchange, which was listed at a 3.3% premium, also followed regulatory fines. The company was previously fined INR 1 crore by the Insurance Regulatory and Development Authority of India (IRDAI) for failing to disclose a change in the conversion ratio of CCPS.
Despite these regulatory challenges, Go Digit reported a 74% rise in Profit After Tax (PAT) to INR 101 crore for Q1 FY25, up from INR 58 crore in the same period last year. The company remains focused on adhering to tax compliance while navigating the evolving regulatory landscape.
