Urban Company has received a show-cause notice from the Directorate General of GST Intelligence, Mumbai, for non-payment of tax. In an exchange filing, the company stated that it has received a notice for non-payment of a tax amounting to Rs 51.3 crore.
Furthermore, Urban Company said that the show cause notice also contains a penalty and interest imposed on the company for tax evasion. The matter pertains to the non-payment of GST during the period from April 2021 to March 2025 across various states in India.
What’s the reason behind the show-cause notice ?
In the exchange filing, Urban Company stated that it has been paying 5% GST under Section 9(5) of the CGST Act 2017 on payments made to professionals providing plumbing, carpentry, electrician, and cleaning services. The company