Go Digit Slapped With Over INR 25 Lakh GST Demand, Penalty Orders

SUMMARY

Go Digit has received GST tax demand and penalty orders of more than INR 26 Lakh from Patna, Pune and Ahmedabad GST authorities

While Go Digit said it does not expect any financial impact on the company due to the tax penalty, it will assess whether or not to appeal against the orders

Go Digit’s profit after tax (PAT) jumped 74% to INR 101 Cr in Q1 FY25 from INR 58 Cr in the year-ago quarter

Listed insurtech startup Go Digit General Insurance has been slapped with tax demand and penalty orders of more than INR 26.5 Lakh related to goods and services tax (GST).

In a regulatory filing on September 1, Go Digit said that the Office of the Joint Commissioner in Patna has levied a penalty of INR 20,000 on the company for late payment of IGST difference.

Additionally, the Office of Assistant Commissioner, Central Goods and Services Tax, Division-I, Pune – II Commissionerate, Shivaji Nagar, Pune, Maharashtra, passed an order, raising the GST demand of INR 9.38 Lakh and imposing a penalty of INR 99,172. The demand order relates to computation of input tax credit eligible to the company, the filing showed.

In a separate filing, Go Digit said it has received a GST tax demand order of INR 14.48 Lakh and a penalty order of INR 1.44 Lakh from the Office of Superintendent, AR I & III, Division VII, CGST Ahmedabad South, Gujarat.

As per the filings, the GST notices were issued for the period April 2019 to March 2020.

While Go Digit said it does not expect any financial impact on the company due to the tax penalty, it will assess whether or not to appeal against the orders.

It is pertinent to note that Go Digit is not the only company to have been hit by GST tax demand notices recently. For instance, foodtech major Zomato received GST tax demand and penalty orders of INR 4.59 Cr last week from Tamil Nadu and West Bengal authorities.

Go Digit made a lukewarm debut on Dalal Street in May this year, with its shares listing at a 3.3% premium over its IPO issue price on the BSE. The stock made its debut at INR 281 apiece on the BSE as against the issue price of INR 272.

Ahead of its IPO, Go Digit was slapped with a penalty of INR 1 Cr by the Insurance Regulatory and Development Authority of India (IRDAI) for non-disclosure of a change in the conversion ratio of compulsorily convertible preference shares (CCPS).

Go Digit’s profit after tax (PAT) jumped 74% to INR 101 Cr in the June quarter (Q1) of the fiscal year 2024-25 (FY25) from INR 58 Cr in the year-ago quarter.