Urban Company Faces Rs 3.04 Crore GST Claim Including Interest and Penalty, Rejects Allegations of Wrong ITC and Tax Underpayment:

Gurugram tax authorities have slapped Urban Company with a Rs 3.04 crore GST show-cause notice for allegedly making wrong input tax credit claims and not paying tax for the 2022-23 financial year.

The Excise & Taxation Officer of State Tax, SGST, Gurugram (East-2), in its notice dated September 29, 2026 issued under the relevant provisions of the CGST, HGST and IGST Acts.

The notice said the tax authorities have raised a demand of Rs 1,67,39,123 against Urban Company. This includes interest of Rs 1,20,52,168 for the financial years 2022-23 to 2025-26 and penalty of Rs 16,73,912. The total amount involved is Rs 3,04,65,203.

Urban Company, however, has rejected the allegations. The company said it had claimed input tax credit in accordance with GST rules and had not wrongly claimed credit or underpaid taxes.

The company added that, based on advice from its external legal and tax advisors, it believes it has a strong case on merits. Urban Company said it will submit its response to the show-cause notice within the prescribed timeline.

The company also stated that the GST notice is not expected to have any impact on its financial position, operations or other business activities at this stage.

The company made the above disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015.