GST Department Drops Proceedings Against Urban Company Limited
Urban Company Limited (UCL) has confirmed that the Goods and Services Tax (GST) Department in Chennai has dropped proceedings initiated against the company, resulting in no tax demand, interest, or penalty.The resolution follows the company's response to a show cause notice (SCN) dated May 04, 2026, issued by the Commercial Tax Officer, Guindy, South-II, Chennai South, Tamil Nadu. UCL announced that it received an official Order dated May 28, 2026, confirming the dropping of proceedings initiated under Section 73 of the SGST Act, 2017.
According to the department's order, the scrutiny cleared several alleged discrepancies. The department confirmed there was no short reporting of outward liabilities in Form GSTR-3B, nor was there a short payment of GST liability, indicating no difference in the turnover reported in GSTR 1 and GSTR 3B. Furthermore, the investigation found that the Input Tax Credit (ITC) reported in the GST returns was eligible, and no ineligible or irregular availment of ITC was noticed. Consequently, the order imposed no tax demand, interest, or penalty on the company.
The core details of the regulatory action and subsequent clearance are as follows:
| Particulars | Details |
|---|---|
| Authority | Commercial Tax Officer, Guindy, South-II, Chennai South, Tamil Nadu (GST Department) |
| Date of Order | May 28, 2026 |
| Action Taken | Proceedings initiated under Section 73 of the SGST Act, 2017, were dropped. |
| Initial Allegation | The SCN sought clarification on discrepancies in turnover reported in GSTR-1 and GSTR-3B, and on excess ITC claimed for the period April 2022 to March 2023. |
| Proposed Demand | The SCN had proposed a potential demand of INR 8,70,03,806/- (Rupees Eight Crore Seventy Lakhs Three Thousand Eight Hundred and Six Only), inclusive of interest and penalty. |
| Outcome | The GST return was found to be in order, resulting in no tax demand, interest, or penalty. |
| Impact on Entity | There is no impact on financial or other activities on the company. |
URBANCO Stock Price Movement
On Wednesday, Urban Company Limited slipped by 0.21%, closing at ₹123.36. The equity posted a notable trading session, registering a total volume of 3.99 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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