Home services platform Urban Company has received a show cause notice from GST authorities over alleged discrepancies in its tax filings for the 2022-23 financial year, according to a regulatory filing.
The notice was issued by the Commercial Tax Officer, Guindy South-II, Chennai South, Tamil Nadu on 4 May under Section 73 of the SGST Act, 2017.
The notice relates to differences in turnover reported in GSTR-1 and GSTR-3B filings, along with allegations of excess input tax credit (ITC) claims between April 2022 and March 2023, the company said.
Tax authorities have raised a demand of Rs 8.7 crore, including interest and penalties.
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.
It had a “strong case on merits”, supported by external legal and tax advisers, and would respond to the notice within the prescribed timeline, it added.
Urban Company also said the notice was “not expected to have any impact on the financial, operational or other activities” of the company.
Source from: https://indianstartupnews.com/news/urban-company-gets-gst-show-cause-notice-over-rs-87-crore-demand-11805304
