Urban Company Faces Gst Demand On Turnover Discrepancies

Home services marketplace Urban Company has received a show cause notice (SCN) from GST authorities over alleged discrepancies in its tax filings for FY23, according to a regulatory filing with the stock exchanges.

The notice, issued by the Commercial Tax Officer in Chennai on May 4, 2026, pertains to discrepancies between the turnover reported in GSTR-1 and GSTR-3B filings, as well as claims of excess input tax credit (ITC). The total demand raised stands at Rs 8.7 crore, including interest and penalties, for the period between April 2022 and March 2023.

Urban Company said it has paid taxes on its reported turnover and claimed input tax credit (ITC) as per the law. The company argues that, as an e-commerce operator, certain transactions under Section 9(5) of the CGST Act have been wrongly treated as its own turnover, which has led to a higher tax demand.

The Gurugram-based firm added that it has a strong case on merits, backed by external legal and tax advisors, and will respond to the notice within the prescribed timelines.

Importantly, the company clarified that the SCN is not expected to have any material impact on its financials, operations, or overall business activities at this stage.

The company is yet to report its Q4 FY26 results. In Q3 FY26, it posted Rs 383 crore in operating revenue, while net losses stood at Rs 21 crore, due to continued investments in its high-frequency housekeeping vertical, InstaHelp. In March, InstaHelp crossed 1 million monthly delivered bookings.