GST Authorities Drop Rs 8.70 Crore Demand Against Urban Company Limited:

Urban Company has informed that the GST Department has dropped the Rs 8.70 crore tax proceedings initiated against the company under the SGST Act for FY 2022-23.

Company Says GST Order Has No Financial Impact After Proceedings Dropped

Saloni Kumari

May 30, 2026

Last update on May 30, 2026

GST Authorities Drop Rs 8.70 Crore Demand Against Urban Company Limited Urban Company Limited has informed the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE) that it has received an order dated May 28, 2026, passed by the Commercial Tax Officer, Guindy, South-II, Chennai South, Tamil Nadu. Through the said order, the GST Department has dropped the tax proceedings initiated against the company under Section 73 of the State Goods and Services Tax (SGST) Act, 2017. The company further discloses that previously, the company had received a show cause notice (SCN) dated May 04, 2026, from the GST authorities under Section 73 of the SGCT Act, 2017, proposing a potential demand of Rs 8.70 crore on the grounds of discrepancy noted in the company's turnover reported by it in GSTR-1 and GSTR-3B, and on the excess ITC (Input Tax Credit) claimed for the financial year 2022-23. Consequently, the company was asked to specify the reason why the proposed demand should not be imposed on it and submit the relevant documents. Thereafter, the company submitted a detailed reply to the SCN. After considering the company's response, the tax authorities dropped the SCN entirely vide an order dated May 28, 2026. The company clarified that the present action of the tax authorities does not have any impact on its financial or other activities. The company has disclosed the aforesaid information through an Intimation dated May 28, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The present disclosure is a continuation of the earlier one dated May 05, 2026.

About Author

Saloni Kumari

Content Writer

Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].