Urban Company has received a show cause notice from GST authorities in Tamil Nadu over alleged discrepancies in GST filings for the financial year 2022–23, according to a regulatory filing by the company. The company added that the show cause notice is not expected to have any material impact on its financial, operational or other business activities.
The notice was issued by the Commercial Tax Officer, Guindy, South II, Chennai South, under Section 73 of the SGST Act, 2017. The tax demand amounts to around Rs 8.7 crore, including interest and penalties, related to differences in turnover reported in GSTR 1 and GSTR 3B filings along with alleged excess input tax credit claims for the period between April 2022 and March 2023.
According to the company’s filing, Urban Company has disputed the allegations and said it had correctly discharged tax liabilities and claimed input tax credit in accordance with applicable GST provisions. The company stated that the tax officer had incorrectly treated turnover under Section 9(5) of the CGST Act as the company’s own turnover.
Urban Company also said it believes it has a strong case based on legal and tax advice received from external advisors and plans to respond to the notice within the prescribed timeline.
