Meesho gets Rs 1,500 crore income tax demand for assessment year 2023-24, says will contest order

Meesho gets Rs 1,500 crore income tax demand for assessment year 2023-24, says will contest order

E-commerce marketplace Meesho has received an income tax demand of about Rs 1,500 crore for the assessment year 2023–24, the company said in a stock exchange filing on March 7, adding that it will challenge the order.

The demand was raised through an assessment order issued under Section 143(3) of the Income Tax Act along with a demand notice under Section 156, the company said in its disclosure.

According to the filing, the tax department has raised a demand of Rs 1,499,73,82,840, including applicable interest.

Meesho said it does not concur with the observations and adjustments made in the assessment order and plans to challenge the demand.

“The company believes that it has adequate legal and factual grounds to contest the same and is taking necessary steps to protect its interest,” the company said in the exchange filing.

The company also noted that the order does not have any major adverse impact on its financial position, operations, or other activities.

What is the earlier tax dispute involving Meesho?

The e-commerce platform said a similar demand order for the previous assessment year (2022–23) had also been issued earlier and disclosed in its prospectus.

The matter is currently pending before the Karnataka High Court, which granted an interim stay on the demand notice on April 17, 2025, according to the filing.

How does this come after Meesho’s recent quarterly results?

The tax notice comes shortly after the company reported a sharp increase in losses in the December quarter.

Meesho’s net loss widened nearly 12-fold year-on-year to Rs 491 crore in Q3, compared with Rs 37.4 crore in the same period last year, even as revenue rose 32 percent to Rs 3,517.6 crore.

The company’s expenses grew faster than revenue during the quarter, pushing losses higher despite continued growth in orders and users. Meesho said its orders rose 36 percent year-on-year to 690 million, while annual transacting users increased 34 percent to 251 million.

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates a marketplace focused on value commerce and small sellers, catering largely to consumers in Tier-II and smaller cities.

The company said it will pursue legal remedies against the tax demand while continuing its operations.