In a legal relief for Go Digit General Insurance, the Bombay High Court has set aside a Rs 170.29 crore GST demand issued by the Chennai South Commissionerate of GST & Central Excise.

The ruling, made earlier this week, relates to alleged tax dues of Rs 154.8 crore and penalties of Rs 15.48 crore for the period between July 2017 and March 2022.

The court took note of previous GST Council discussions and related circulars addressing similar sector-wide concerns, according to Go Digit’s disclosure on the stock exchanges. Based on these, the court has directed tax authorities to re-examine the case in line with the guidelines and complete the reassessment within three months, it added.

Go Digit listed on the stock exchanges in May last year. 

The disputed tax liability had been mentioned in the Red Herring Prospectus of Go Digit's initial public offering (IPO). 

The company stated that it is now evaluating its legal options and awaiting a formal copy of the court’s order.

Go Digit emphasized that the issue is not isolated but part of a broader industry-wide challenge. 

The company clarified that, for now, there are no financial consequences from this case due to the High Court's interim relief.

Go Digit, which was founded by Kamesh Goyal in 2016, had raised funding from investors including Canadian billionaire Prem Watsa's Fairfax, A91 Partners, Peak XV Partners, Faering Capitla and TVS Capital before going public last year.

Go Digit's gross written premium (GWP) increased to Rs 10,282 crore in FY25, up 14% from Rs 9,016 crore in FY24. Its net profit soared 133% to Rs 425 crore during the fiscal.