Bengaluru-based e-commerce giant Meesho disclosed that it received an income tax demand of approximately ₹1,500 crore (specifically ₹1,499.73 crore, including interest) for the Assessment Year 2023–24.
The notice, issued under Section 156 of the Income Tax Act, follows an assessment order that made significant “additions and adjustments” to the company’s reported income.
Key Details of the Tax Dispute
The demand stems from a disagreement between the tax authorities and the marketplace regarding how certain expenses are classified.
- The Core Issue: While the specific details are under evaluation, analysts suggest the dispute likely mirrors previous e-commerce cases where customer discounts, incentives, and marketing spends are treated as capital expenditures rather than fully deductible business expenses.
- Meesho’s Stance: In its regulatory filing, Meesho stated it “does not concur with the observations” and believes it has “adequate legal and factual grounds” to contest the demand.
- Financial Impact: The company has assured stakeholders that the notice will not have a “material adverse impact” on its current operations or financial position.
A Recurring Legal Battle
This is not the first time Meesho has faced a major tax claim. The company is currently managing a “pattern” of tax litigation:
| Assessment Year | Demand Amount | Current Status |
| AY 2022–23 | ₹572 Crore | Stayed by the Karnataka High Court on April 17, 2025; matter is sub-judice. |
| AY 2023–24 | ₹1,499.7 Crore | New Notice (March 5, 2026); Meesho planning a legal appeal. |
Recent Listing & Financial Health
The tax notice comes at a sensitive time for the company, which recently transitioned from a “social commerce” startup to a publicly listed entity.
- IPO Milestone: Meesho successfully went public on December 10, 2025, with its listing gain ranking as one of the largest for big-size IPOs in recent years.
- Q3 FY26 Results: Shortly before the tax notice, Meesho reported ₹3,517.6 crore in quarterly revenue (up 32% YoY). However, its net losses widened 12-fold to ₹491 crore, driven by aggressive expansion and rising operational costs.
- Market Position: Despite the losses and tax hurdles, the company maintains a massive user base of 251 million annual transacting users, solidifying its position as India’s leading marketplace for tier-2 and tier-3 cities.
