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Meesho Hit with Rs 1,500 Crore Tax Demand, Vows to Challenge Order

E-commerce marketplace Meesho has received an income tax demand of nearly Rs 1,500 crore for the assessment year 2023-24. The company stated it disagrees with the tax department's observations and will challenge the order. Meesho clarified that the demand does not have a major adverse impact on its financial position or operations. A similar tax demand for the previous assessment year is currently under an interim stay from the Karnataka High Court.

Key Points: Meesho Gets Rs 1500 Crore Tax Demand for AY23-24

  • Rs 1,499.73 crore tax demand
  • Assessment for AY 2023-24
  • Company will legally challenge order
  • Similar demand for AY22-23 under court stay
  • Says no major adverse operational impact
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Meesho gets Rs 1,500 crore income tax demand for AY23-24

E-commerce platform Meesho receives a Rs 1,500 crore income tax demand for AY23-24. The company disagrees and plans to legally contest the order.

"The Company believes that it has adequate legal and factual grounds to contest the same - Meesho"

New Delhi, March 7

E-commerce marketplace Meesho has received an income tax demand of nearly Rs 1,500 crore for the assessment year 2023-24 and said it will challenge the order, stating that it disagrees with the tax department's observations.

The demand was issued through an assessment order under Section 143(3) of the Income Tax Act, 1961 along with a demand notice under Section 156.

According to an exchange filing, the tax authorities have raised a total demand of Rs 1,499.73 crore, including applicable interest.

"Based on the said Assessment Order under Section 143(3) of the Income-tax Act, 1961 along with a Demand Notice under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2023-24, the Assessment Unit of Income Tax Department has raised a tax demand aggregating to Rs 14,99,73,82,840, including applicable interest," the e-commerce platform said.

Meesho said it does not agree with the observations and adjustments made in the assessment order.

"The Company is currently evaluating the Assessment Order and does not concur with the observations and adjustments made in the Assessment Order," it added.

The company added that it believes it has strong legal and factual grounds to contest the demand and is taking necessary steps to protect its interests.

"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 e-commerce firm stated.

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

"The Assessment Order along with the Demand Notice does not have any major adverse impact on the Company's financial position, operations, or other activities," it added in its filing.

Meesho noted that a similar tax demand had earlier been issued for the previous assessment year 2022-23.

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

- IANS

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Reader Comments

S
Shreya B
My mom sells homemade pickles on Meesho. News like this makes us worried. If the company faces financial pressure, will commissions go up for us sellers? Hope they resolve it quickly without affecting the small entrepreneurs.
A
Aman W
Respectfully, this seems like a pattern. A similar demand for last year is already in court. It makes one wonder about the clarity of tax laws for new-age digital businesses. The government should provide more certainty to foster innovation, not create constant litigation.
P
Priyanka N
As a regular customer, I love Meesho for affordable fashion. But big companies must pay their fair share of taxes. If they've avoided tax, they should pay up. Our country needs that revenue for development projects. 🇮🇳
K
Karthik V
The amount is staggering, but the company says it won't affect operations. Let's see. The court stay for the previous year's demand is a positive sign for them. The legal system will decide what's correct. Due process should be followed.
M
Michael C
Watching from the US. These massive retrospective tax demands can really spook foreign investors looking at India. Consistency and predictability in tax enforcement are key for the 'Make in India' story to succeed globally.

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