Urban Company Limited has received an order dated December 19, 2025, from the Joint Commissioner, CGST & Central Excise, Thane, confirming a total demand of ₹51,30,32,855 (Rupees fifty-one crore thirty lakhs thirty-two thousand eight hundred and fifty-five only) along with a penalty of ₹5,13,03,286 (Rupees five crore thirteen lakhs three thousand two hundred and eighty-six only) for the period April 2021 to March 2025. The demand pertains to the non-payment of tax under Section 9(5) of the CGST Act, 2017. The company has been discharging GST at 5% on payments to professionals for plumbing, carpentry, electrician, and cleaning services, considering them as housekeeping services. However, the Joint Commissioner's order views that the scope of housekeeping services also extends to appliance repair, servicing, and painting services, leading to the GST demand on payouts to service professionals rendering these services. Urban Company Limited stated that it believes it has a strong case on merits, supported by external legal and tax advisors, and will be filing an appeal against the order before the appropriate authority. The company has also asserted that the order will not impact its financial, operational, or other activities.
