Urban Company Faces Rs 8.7 Cr GST Demand for GSTR-1 and GSTR-3B mismatch
Urban Company Limited, an online platform that connects users with trained professionals for home services such as cleaning, beauty, repairs, and maintenance, recently disclosed to NSE Ltd. and BSE Ltd. that it had received a show-cause notice.
Background
The company received an SCN from a tax officer asking why there is a mismatch between the turnover it reported in GSTR1 and GSTR 3B and why it may have claimed extra input tax credit. The tax department is demanding about Rs 8,70,03,806 (including interest and penalties) for the period April 2022 to March 2023.
Company’s response
The company stated that it has already paid all the required taxes correctly and claimed input tax credit as per the law. It argues that the tax officer incorrectly considered the turnover under section 9(5) of the CGST Act as its own revenue, which led to the mismatch.
Company’s further step
The company stated that it is confident that it has a strong legal case and will reply to the tax notice within the given deadline.
Key Details
| Particular | Details |
| Company | Urban Company Limited |
| Issuing Authority | Commercial Tax Officer, Guindy, South-II, Chennai South, Tamil Nadu |
| Demand | Rs 8,70,03,806 |
| Order | Show Cause Notice under Section 73 of SGST Act, 2017 |
| Reciept of demand | May 04, 2026 |
| Financial Impact | NIL |
Company’s disclosure
The company made the above disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
