Tax blow for Urban Company! Unicorn gets Rs 51.3 cr GST demand over THIS – What recently listed company said

Urban Company GST Notice: In a major financial trouble for India's largest home-services provider, Urban Company, has disclosed receiving a Goods and Services Tax (GST) demand amounting to Rs 51.30 crore ($6.2 million), along with a penalty of Rs 5.13 crore.

The home services unicorn, in a stock exchange filing on Saturday, said the tax demand pertains to the period between April 2021 and March 2025.

“…this is to inform you that Urban Company Limited (‘UC’ or ‘the Company’) has received an order dated December 19, 2025 passed by the Joint Commissioner, CGST & Central Excise, Thane confirming total demand of GST of INR 51,30,32,855/- (Rupees fifty one crore thirty lakhs thirty two thousand eight hundred and fifty five only) along with penalty of INR 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 across States and interest, as applicable as per CGST Act, 2017,” Urban Company stated in the regulatory filing.

Urban Company further stated that it will file an appeal against the order before the appropriate authority based on opinions from external legal and tax advisers.

Maintaining that the company has “strong case on merits, supported by the opinion of our external legal and tax advisors,” it claimed 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 in the filing.

Urban Company informed that GST demand relates to alleged non-payment of GST under Section 9(5) of the CGST Act on payouts made to service professionals.

The company stated 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 Joint Commissioner, however, in the order, has taken a view that the scope of housekeeping services under Section 9(5) also extends to appliance repair, appliance servicing, and painting services. GST demand has been raised on the payout to service professionals rendering these services,” the filing said.

Urban Company Q2 FY26 Results

Q2 performance Urban Company, which was listed in September 2025, had reported a consolidated net loss of Rs 59 crore in the second quarter of FY26 as compared to Rs 2 crore in the same quarter last year.

However, its revenue from operations grew 37 per cent year-on-year to Rs 380 crore. The company’s expenses increased to Rs 462 crore during the July-September period, up 51 per cent from Rs 306 crore in the year-ago period.