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Policy · Professional & Local Services

Urban Company faces GST demand over turnover discrepancies

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Urban Company logo
Date
Company
Urban Company
What it does
home services marketplace
Kind
Policy
Amount
₹8.7 crore
Based in
Gurugram
Sector
Professional & Local Services

What they do

Urban Company, a home services marketplace, has received a show cause notice from GST authorities over alleged discrepancies in its tax filings for FY23

What happened

The notice, issued by the Commercial Tax Officer in Chennai, relates to discrepancies between turnover reported in GSTR-1 and GSTR-3B filings, and claims of…

Why it matters

The total demand raised by GST authorities stands at ₹8.7 crore, including interest and penalties, for the period between April 2022 and March 2023

The details

  • Urban Company, a home services marketplace, has received a show cause notice (SCN) from GST authorities over alleged discrepancies in its tax filings for FY23.
  • 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 by GST authorities stands at ₹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.
  • Urban Company said it has a strong case on merits, backed by external legal and tax advisors, and will respond to the notice within the prescribed timelines.
  • 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 bigger picture

  • The notice was issued under Section 73 of the SGST Act, 2017, by the Commercial Tax Officer, Guindy South-II, Chennai South, Tamil Nadu.
  • Urban Company said it had 'duly discharged tax on the turnover reported in its GST returns for FY 2022-23 and claimed ITC in accordance with the provisions of the Act'.
  • The company argued that the tax officer had 'incorrectly considered the turnover under Section 9(5) of the CGST Act', on which it said tax had been discharged by the company as an e-commerce operator, as the company’s own turnover.

About the business

  • Urban Company is a home services marketplace that connects customers with professionals for a wide range of services, including cleaning, home repair, appliance repair, and personal care.
  • The company operates in Delhi NCR and offers services such as InstaHelp, which provides high-frequency housekeeping services.
  • Urban Company's website lists a variety of services, including AC repair, water purifier installation, and salon and spa services.
  • The company's services are available through its platform, with customer reviews and ratings displayed for each service provider.
  • Urban Company's InstaHelp service crossed 1 million monthly delivered bookings in March 2026.

The deal

Type
policy

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