Meesho hit with ₹1,500cr tax demand by IT department
What's the story
E-commerce giant Meesho has been hit with a tax demand of nearly ₹1,500 crore by the Income Tax Department for the assessment year 2023-24. The Bengaluru-based company revealed this in its regulatory filing with stock exchanges. The tax authority issued an assessment order under Section 143(3) of the Income-tax Act and a demand notice under Section 156, totaling ₹1,499.7 crore including interest.
Legal challenge
Meesho believes it has sufficient legal basis to challenge demand
Meesho does not agree with the observations and adjustments made by the tax department in its assessment order. The company is currently reviewing the matter and believes it has sufficient legal and factual basis to challenge this demand. It is taking all necessary steps to safeguard its interests in this case.
Ongoing litigation
Similar demand issued for previous assessment year
Notably, the tax department had also issued a similar demand for the assessment year 2022-23. In that case, an interim stay was granted by the Karnataka High Court on April 17, 2025. The matter is still pending in court. Meesho has said that these latest developments are not likely to have any material adverse effect on its financial position or operations.
Business growth
Meesho's financial performance in Q3 FY26
In the third quarter of FY26, Meesho posted a 31% year-on-year (YoY) increase in operating revenue to ₹3,517.5 crore. However, its losses ballooned over 13 times to ₹490 crore during the same period. Despite these challenges and the recent tax demand, Meesho's stock closed at ₹158.6 on Friday, giving it a market cap of ₹71,578 crore (around $7.9 billion).