Go Digit General Insurance Receives Show Cause Notice from GST Authority Regarding Input Tax Credit
Go Digit General Insurance Limited has received a Show Cause Notice (SCN) from the Directorate General of GST Intelligence (DGGI), a wing of the GST Authority, concerning the alleged ineligible availment of Input Tax Credit (ITC).The notice, received on May 25, 2026, was issued under Section 74(1) of the Central Goods and Services Tax Act, 2017 (CGST Act). The SCN alleges an ineligible ITC amounting to Rs. 20,51,00,281, pertaining to the period spanning September 2022 to March 2024.
The notice requires the company to show cause as to why a demand, interest, and penalty should not be confirmed against it.
Details of the Demand
The primary financial implications detailed in the SCN relate to the alleged ineligible ITC. The quantum of the claims includes:| Particulars | Amount / Basis |
|---|---|
| Demand | Rs. 20,51,00,281 (Rupees Twenty Crore Fifty-One Lakh Two Hundred Eighty-One only) |
| Interest | As applicable under Section 50(3) of the CGST Act, 2017 read with Rule 88B of the CGST Rules, 2017 |
| Penalty | Equivalent to the ineligible ITC demanded, under Section 74(1) of the CGST Act, 2017 |
The communication received by the company, identifying the Additional Director, DGGI, Bengaluru Zonal Unit as the issuing authority, pertains to the Financial Years 2022-23 and 2023-24.
Company's Stated Action
The company stated that it is currently evaluating the Show Cause Notice. According to tax advisors, Go Digit General Insurance Limited plans to file a detailed reply with the adjudicating authority within the prescribed timelines and intends to pursue all available legal remedies.The notice received does not constitute a final order, and no penalty, restriction, or sanction has been imposed on the company as of the date of the communication. The company confirmed that there is no immediate financial impact at this stage.
GODIGIT Stock Price Movement
Go Digit General Insurance Limited shares today slipped by 0.72% to settle at ₹304.30. The equity saw substantial interest in the session, trading a volume of 83,219 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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