Urban Company to appeal against Rs 56 crore GST demand, penalty

Urban Company has received a Goods and Services Tax (GST) demand of Rs 51.30 crore ($6.2 million) in tax, along with a penalty of Rs 5.13 crore, the company disclosed in a stock exchange filing on Saturday. The tax demand pertains to the period between April 2021 and March 2025.

Urban Company said it will file an appeal against the order before the appropriate authority based on opinions from external legal and tax advisers. The company added that the order will not impact its financial, operational, or other activities.

The order was passed by the Joint Commissioner of CGST and Central Excise, Thane, under provisions of the CGST Act, 2017 and related laws, the company said. Urban Company said the tax demand relates to alleged non-payment of GST under Section 9(5) of the CGST Act on payouts made to service professionals. The company said it has been discharging GST at a rate of 5% on payments to professionals providing plumbing, carpentry, electrical, and cleaning services, treating them as housekeeping services.


The GST authority, however, took the view that the scope of housekeeping services also extends to appliance repair, appliance servicing, and painting services, and raised the demand for payouts for those services, the filing said.

Urban Company Q2 performance

Urban Company, which was listed in September, had reported a consolidated net loss of Rs 59 crore in the September quarter of FY26, compared to Rs 2 crore in the same quarter last year. However, its revenue from operations grew 37% on-year to Rs 380 crore.

The company’s expenses increased to Rs 462 crore during the July-September period, up 51% from Rs 306 crore in the year-ago period. Of this, Rs 114 crore was spent on employee costs, up from around Rs 90 crore in the year-ago period.