Urban Company gets GST show cause notice for FY23, demand of 3.05 crore

Regulatory & Legal View source PDF Explain this filing

URBANCO · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reactionminutes from the announcement price · days from the prior close

-4.1%Reaction day

₹163.64

prior close

₹163.40

announcement price

After-mkt

timing

Nifty Smallcap 250market+0.3%-4.3% vs market

E-Retail/ E-Commerce peers, median of 14sector-1.8%-2.2% vs sector

On the reaction day the stock moved 4.3 pts less than Nifty Smallcap 250 and 2.2 pts less than its E-Retail/ E-Commerce peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

+0.1

10m

-0.2

15m

-0.6

30m

-1.6

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-4.1+0.3-4.3-1.8-2.2

Next day

-4.7-0.9-3.8-1.5-3.2

-2.8-0.5-2.3-0.6-2.2

+6.0+0.9+5.1+0.0+5.9

+2.8+1.0+1.8-0.0+2.8

-1.3-1.5+0.1-2.4+1.1

+0.1+0.1-0.0+2.3-2.2

15d

-19.3-7.7-11.7-4.6-14.7

-6.8pendingpending-1.9-4.9

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UpDownMarket · Nifty Smallcap 250Sector · E-Retail/ E-Commerce peers, median of 14Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

Urban Company received a show cause notice from SGST Gurugram alleging incorrect input tax credit claim and short tax payment for FY 2022-23. Total demand is about INR 3.05 crore comprising INR 1.67 crore tax, INR 1.20 crore interest and INR 16.7 lakh penalty. Company says it duly claimed credit as per GST law and has a strong case backed by external legal and tax advisors, and will respond within prescribed timelines. UC states no impact on financial or operational activities.

Likely market impact

Demand is small relative to company size; UC plans to contest. Adverse order could affect financials.