Insurtech startup Go Digit General Insurance has been slapped with more than INR 26.5 lakh in tax demand and penalty orders pertaining to goods and services tax. Go Digit said in a regulatory filing on September 1 that tax authorities have issued penalties and demands in several states.
PC: Moneycontrol
The Office of the Joint Commissioner, Patna, imposed a fine of INR 20,000 on Go Digit due to delay in paying the differential amount of IGST. Also, the Office of Assistant Commissioner, Pune, issued a GST demand order of INR 9.38 lakh and slapped a fine of INR 99172 pertaining to the calculation of the amount of eligible input tax credit.
Also, the Office of Superintendent in Ahmedabad South, Gujarat charged the firm with a GST demand order worth INR 14.48 lakh and a penalty order amounting to INR 1.44 lakh against Go Digit. These notices pertain to the period spanning from April 2019 to March 2020.
Despite the following tax penalties, Go Digit said it does not expect the financial consequence on the company to be material. The firm further added that it will review filing an appeal against the orders passed by the tax authorities to appropriately address the situation.
Significantly, Go Digit is not alone that received the GST tax demand notice in recent times. For instance, foodtech giant Zomato received an order of tax demand and penalty amounting to INR 4.59 crore levied by the GST authorities of Tamil Nadu and West Bengal.
This May, Go Digit went in for a relatively low-key listing on Dalal Street as the shares had listed at a 3.3% premium compared to the IPO issue price on the Bombay Stock Exchange. Hence, the stock opened at ₹281 per share on BSE, marginally higher than the issue price of ₹272.
Ahead of its IPO, Go Digit was fined INR 1 crore by IRDAI for failing to disclose a change in the conversion ratio of CCPS.
Notwithstanding the regulatory concerns, Go Digit said its PAT soared 74% in Q1 of FY25 to INR 101 crore from INR 58 crore in the same period a year ago. The company remains well-entrenched in the evolving regulatory environment and managed to sustain its financial performance despite headwinds in the industry.
Overall, Go Digit continues to put a lot of focus on its tax liabilities and adherence to regulatory matters while attempting to chart a growth trajectory in the competitive insurance market.
