Urban Company Limited (listed on Indian Stock Exchanges) today announced that GST proceedings undertaken by Commercial Tax Officer at Guindy South-II, Chennai South, Tamil Nadu under Section 73 of the SGST Act, 2017 have been dropped without any tax demand, interest or penalty being levied on the Company.
Proposed Demand of ₹8.70 Crore Withdrawn
The GST Proceedings against Urban Company Ltd were initiated by the Commercial Tax Officer at Guindy South-II, Chennai South, Tamil Nadu, (“Tax Authority”) under Section 73 of the SGST Act, 2017 vide show cause notice dated May 4, 2026 (“SCN”). The proposed demand of Rs 8.70 Crore (Rupees Eight Crore Seventy Three Lakhs Three Thousand Eight Hundred Six) towards output tax liability for the fiscal year 2023 had been proposed to be added, along with interest thereon under section 31(4) of the SGST Act, 2017 and penalties under section 122 of the said Act.
The proposed proceeding by the department was on account of discrepancy in turnover reported in GSTR-1 and GSTR-3B for FY 2022-23 and the Input Tax Credit (ITC) claimed by the Company for the said period.
Findings of the Tax Authority
A thorough verification was carried out of the documents submitted by Urban Company and it was found that the outward tax liability had been correctly reported in the GSTR-3B returns. A verification of the turnover reported in the GSTR-1 returns against the turnover reported in the GSTR-3B returns was also carried out and found to be accurate with no discrepancies whatsoever.
The input tax credit (ITC) claimed by the Urban Company as well as all other ITCs were 100% found to be eligible. No irregularities / ineligible credits were detected in the records of the Company.
No Demand, Interest, or Penalty
SCN has been dropped by tax authority and no demand of tax, interest and penalty shall be raised by tax authority and order has been passed on May 28, 2026.
No further action is required by the Urban Company in this matter, as communicated by the Company through their disclosures. This order also does not impact the Company’s financial, operational or business activities in any manner whatsoever.
Urban Company Share Price Performance
Urban Company’s stock closed at Rs 121.16, down 1.78% from its previous close on May 29, 2016 at 1:12 PM.
Conclusion
Thus the GST matter of the Urban Company pertaining to alleged demand of Rs. 8.70 Crore for the FY 2018-19 raised on account of alleged mis-declaration of sales and corresponding ITC in returns of Urban Company is finally closed and confirmatory of the same being correctly computed and reported by Urban Company in returns particularly GSTR 3B of corresponding periods and accordingly there is no mis-match of sales in returns of GSTR 1 and GSTR 3B.