Insurtech major Go Digit has received a tax demand notice of ₹384.4 crore from the Income Tax (IT) Department for the assessment year 2023–24 (AY24), the company disclosed. The demand includes applicable interest of ₹100.4 crore.
According to the company, the demand arises primarily from multiple disallowances made by the tax assessment unit. These include disallowance of provisions for claims classified as Incurred But Not Reported (IBNR) and Incurred But Not Enough Reported (IBNER).
The notice also cites disallowances under Section 40(a)(ia) of the Income Tax Act for non-deduction of TDS on certain expenses, as well as under Section 40(a)(i) for non-deduction of TDS on reinsurance premiums paid to non-resident insurance companies.
Go Digit said the issues highlighted in the notice are not unique to the company and reflect broader industry-wide practices. The company added that it intends to challenge the demand through appropriate legal channels.
The development comes weeks after Go Digit received multiple GST-related demand notices. The company, earlier this month, received a notice of around ₹170 crore for alleged short payment of taxes over nearly five years.
More recently, the Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate reaffirmed a demand of ₹154.80 crore, along with a penalty of ₹15.48 crore and applicable interest under the CGST Act.
The GST demand pertains to the period between July 2017 and March 2022. It relates mainly to alleged non-payment of GST on co-insurance premiums received as a follower in co-insurance arrangements and on reinsurance commissions deducted from premiums ceded to domestic and foreign reinsurers.
The reaffirmed order follows a July 2025 ruling by the Bombay High Court, which had set aside an earlier demand and directed tax authorities to re-examine the case in light of GST Council decisions and related circulars.
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Go Digit had earlier maintained that the GST issues were industry-wide and said it was evaluating legal options, including filing an appeal or a writ petition.
On the financial front, the company reported an 18% year-on-year rise in net profit to ₹140 crore in Q3 FY26, compared to ₹118.5 crore in the same quarter last year.
Gross written premium increased 9% year-on-year to ₹2,909.2 crore during the quarter. However, net premium written declined 4% year-on-year to ₹2,148.2 crore. Net premium earned (NPE) stood at ₹2,160.1 crore, up 4% year-on-year.
Total income rose 5% year-on-year to ₹2,497.7 crore, while total expenses increased 3% to ₹2,386.1 crore in Q3 FY26.
Shares of Go Digit closed 0.88% higher at ₹325 on the BSE on Wednesday. Stock exchanges remained shut on Thursday on account of Ram Navami.
