Meesho Faces Rs 1,500 Crore Tax Demand from Income Tax Department

E-commerce marketplace Meesho has been issued a tax demand amounting to nearly Rs 1,500 crore by the Income Tax Department for the assessment year 2023-24, as per its regulatory filing with the stock exchanges. The Bengaluru-based company reported that the tax authority has issued an assessment order under Section 143(3) of the Income-Tax Act, along with a notification under Section 156, leading to a cumulative demand of Rs 1,499.7 crore, which includes applicable interest.

Details of the Tax Demand

The demand arises from various additions and adjustments implemented by the tax department regarding the income reported by the company for the assessment year. Meesho has indicated its disagreement with the observations and adjustments highlighted in the assessment order and is currently reviewing the situation. The company believes it possesses sufficient legal and factual grounds to dispute the demand and is undertaking necessary measures to safeguard its interests.

Previous Tax Demand and Court Intervention

Additionally, Meesho noted that the tax department had previously issued a similar demand for the assessment year 2022–23. In that instance, the Karnataka High Court provided an interim stay on the demand notice through an order dated April 17, 2025, with the matter still pending resolution.

Financial Impact of the Demand

Meesho stated that it does not anticipate the latest assessment order and demand notice to significantly impact its financial position, operations, or other activities. The company has recently reported a year-on-year operating revenue growth of 31%, reaching Rs 3,517.5 crore in Q3 FY26, although its losses escalated over 13 times to Rs 490 crore during the same period.

Current Market Performance

As of the close of Friday’s trading session, Meesho shares were priced at Rs 158.6, resulting in a total market capitalization of Rs 71,578 crore, equivalent to approximately $7.9 billion.