Meesho gets ₹1,500 crore tax demand for FY24, company to challenge order
According to the exchange disclosure, 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 total demand amounts to ₹1,499.73 crore, including interest, as per the filing.
- Mar 7, 2026,
- Updated Mar 7, 2026 5:39 PM IST
E-commerce marketplace Meesho has received an income tax demand of nearly ₹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 through legal remedies.
According to the exchange disclosure, 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 total demand amounts to ₹1,499.73 crore, including interest, as per the filing.
The company said it disagrees with the observations made by the tax authorities and believes the adjustments in the assessment order are not justified.
“Meesho does not concur with the observations and adjustments made in the assessment order. The company believes that it has adequate legal and factual grounds to contest the demand and is taking necessary steps to protect its interests,” the filing stated.
The company also clarified that the tax demand is not expected to have any material adverse impact on its financial position, operations, or business activities at this stage.
Earlier tax dispute still pending
This is not the first time the company has faced such a tax claim. Meesho said a similar demand for the assessment year 2022–23 had been issued earlier and was disclosed in its prospectus.
That matter is currently pending before the Karnataka High Court, which had granted an interim stay on the demand notice on April 17, 2025, the company said.
Notice comes after weak quarterly results
The latest tax demand comes shortly after Meesho reported a sharp increase in losses for the December quarter, even as revenue and order volumes continued to grow.
For the third quarter, the company’s net loss widened nearly 12 times year-on-year to ₹491 crore, compared with ₹37.4 crore in the same period last year. Revenue during the quarter rose 32% to ₹3,517.6 crore, but expenses increased at a faster pace, leading to higher losses.
Despite the losses, Meesho reported strong user activity. Orders grew 36% year-on-year to 690 million, while the number of annual transacting users increased 34% to 251 million.
Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates a marketplace focused on value-driven commerce and small sellers, with a large share of its users coming from Tier-II and smaller cities.
The company said it will continue to pursue legal options against the tax demand while maintaining normal business operations.
E-commerce marketplace Meesho has received an income tax demand of nearly ₹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 through legal remedies.
According to the exchange disclosure, 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 total demand amounts to ₹1,499.73 crore, including interest, as per the filing.
The company said it disagrees with the observations made by the tax authorities and believes the adjustments in the assessment order are not justified.
“Meesho does not concur with the observations and adjustments made in the assessment order. The company believes that it has adequate legal and factual grounds to contest the demand and is taking necessary steps to protect its interests,” the filing stated.
The company also clarified that the tax demand is not expected to have any material adverse impact on its financial position, operations, or business activities at this stage.
Earlier tax dispute still pending
This is not the first time the company has faced such a tax claim. Meesho said a similar demand for the assessment year 2022–23 had been issued earlier and was disclosed in its prospectus.
That matter is currently pending before the Karnataka High Court, which had granted an interim stay on the demand notice on April 17, 2025, the company said.
Notice comes after weak quarterly results
The latest tax demand comes shortly after Meesho reported a sharp increase in losses for the December quarter, even as revenue and order volumes continued to grow.
For the third quarter, the company’s net loss widened nearly 12 times year-on-year to ₹491 crore, compared with ₹37.4 crore in the same period last year. Revenue during the quarter rose 32% to ₹3,517.6 crore, but expenses increased at a faster pace, leading to higher losses.
Despite the losses, Meesho reported strong user activity. Orders grew 36% year-on-year to 690 million, while the number of annual transacting users increased 34% to 251 million.
Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates a marketplace focused on value-driven commerce and small sellers, with a large share of its users coming from Tier-II and smaller cities.
The company said it will continue to pursue legal options against the tax demand while maintaining normal business operations.