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.