Go Digit Wins Rs 170 Cr Tax Dispute, Court Orders Re-examination
Go Digit General Insurance has received a significant victory in a long-standing tax dispute. The Bombay High Court has overturned a Rs 170.29 crore demand raised by the IRS, providing temporary relief to the insurer. The court's decision comes after Go Digit reported impressive financial growth. For the quarter ended March 31, 2025, the company's profit after tax surged by 119.5% year-on-year. This trend continued for the full fiscal year, with net profit increasing by 133% to Rs 425 crore. The insurer also saw a 10.29% rise in gross premiums written during the quarter to Rs 2,576.38 crore, and total income grew by 6.04% year-over-year to Rs 2,855.18 crore. The demand from the IRS, which has now been overturned, included Rs 154.80 crore in tax liabilities and an additional Rs 15.48 crore in penalties, spanning the period from July 2017 to March 2022. Following the court's decision, Go Digit has confirmed that there are no financial implications from the order at this stage, and no penalties or restrictions have been imposed. Go Digit General Insurance has secured a notable win in its tax dispute with the authorities. The company is currently reviewing legal options and has not yet taken formal action in response to the order. The High Court has directed the adjudicating authority to re-examine the case based on the GST Council's guidance and complete the process within three months. The Income Tax Department has also been requested to re-examine the dispute based on the court ruling.
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