Meesho Limited, one of India’s leading social commerce and e-commerce platforms, has received a tax demand of approximately ₹1,499.73 crore from the Income Tax Department.

The company disclosed this development in a regulatory filing to stock exchanges on March 6, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The demand arises from an assessment order issued under Section 143(3) of the Income-tax Act, 1961, along with a demand notice under Section 156 of the Act.

According to the company, the order relates to the Assessment Year 2023-24, and the notice was issued by the Assessment Unit of the Income Tax Department.

Meesho has stated that it does not agree with the observations made in the assessment order and intends to challenge the demand using available legal remedies.

Details of the Income Tax Order

The Income Tax Department’s Assessment Unit issued the order and demand notice on March 5, 2026, and Meesho received the communication on March 6, 2026.

The demand raised by the department amounts to ₹14,99,73,82,840, which includes tax liability and applicable interest.

The demand arises from adjustments and additions made by the tax authorities to the income reported by the company during the tax assessment process.

Tax assessments under Section 143(3) involve a detailed scrutiny of a taxpayer’s financial records, income declarations, and compliance with tax laws.

If the tax department finds discrepancies or believes that certain income has been underreported or deductions have been claimed incorrectly, it can issue an assessment order revising the tax liability.

Meesho’s Response to the Tax Demand

Meesho has stated that it does not concur with the findings and adjustments made in the assessment order.

The company believes it has strong legal and factual grounds to contest the tax demand.

In its filing, Meesho said it is currently:

• Evaluating the assessment order in detail

• Consulting legal and tax advisors

• Preparing to take necessary legal steps to challenge the order

The company emphasised that it is committed to protecting its interests through appropriate legal channels.

Such disputes between companies and tax authorities are common in large businesses, especially when interpretations of tax laws differ between the company and regulators.

Impact on Meesho’s Financial Position

Despite the large tax demand, Meesho has clarified that the order is not expected to have a major adverse impact on its financial position, operations, or business activities.

This means that:

• The company currently does not expect any immediate disruption to operations

• The demand will likely be challenged through legal proceedings

• Financial liabilities will depend on the final outcome of the dispute

In many tax cases, companies can appeal against assessment orders before appellate authorities or courts, and the final liability may change after judicial review.

Similar Tax Demand in Previous Assessment Year

The company also highlighted that a similar tax demand had been raised earlier for the Assessment Year 2022-23.

That earlier dispute was disclosed in the company’s prospectus dated December 5, 2025, which was filed before its public listing.

In that case, the Karnataka High Court granted an interim stay on the demand notice on April 17, 2025.

The matter related to the previous year’s tax demand remains pending before the court.

This background indicates that tax disputes between Meesho and authorities have been ongoing for multiple financial years.

Understanding Section 143(3) of the Income Tax Act

Section 143(3) of the Income Tax Act, 1961 deals with scrutiny assessment.

During a scrutiny assessment:

• The tax department examines income declarations and financial statements

• Authorities may request additional documents or explanations

• Adjustments can be made if the department finds discrepancies or incorrect claims

After completing the review, the department issues an assessment order determining the final taxable income and tax payable.

If additional tax is determined, a demand notice under Section 156 is issued to recover the amount.

Taxpayers can challenge such orders through appeals before higher tax authorities or courts.

About Meesho

Meesho Limited, formerly known as Meesho Private Limited and Fashnear Technologies Private Limited, is a major Indian social commerce platform.

Founded in 2015, the company allows small businesses and entrepreneurs to sell products online through social media platforms and e-commerce channels.

Meesho has built a strong presence in India’s value e-commerce segment, focusing on:

• Affordable fashion

• Household goods

• Consumer products

• Small merchant enablement

The company has also become known for empowering millions of small sellers and resellers across India, especially in tier-2 and tier-3 cities.

Meesho’s Growth in India’s E-Commerce Market

Over the past few years, Meesho has emerged as a significant player in India’s e-commerce industry.

The company competes with major online platforms such as:

• Flipkart

• Amazon India

• Snapdeal

However, Meesho differentiates itself by focusing on social commerce and small sellers, enabling individuals to start online businesses with minimal investment.

Key features of Meesho’s business model include:

• Zero commission for sellers in certain categories

• Strong focus on affordable products

• Extensive reach in non-metro markets

These strategies have helped Meesho rapidly expand its seller base and customer reach.

Importance of Regulatory Disclosures

Meesho disclosed the tax demand to stock exchanges in compliance with SEBI’s Listing Obligations and Disclosure Requirements (LODR).

Under these rules, listed companies must promptly inform stock exchanges about significant regulatory actions, tax disputes, or legal proceedings that could affect the company.

Such disclosures ensure:

• Transparency for investors

• Timely information for shareholders

• Compliance with regulatory standards

Meesho also confirmed that the information has been published on its investor relations website.

Possible Legal Path Ahead

After receiving the tax demand, Meesho may pursue several legal options.

Typically, companies in such situations may:

1. File an appeal before the Commissioner of Income Tax (Appeals)

2. Challenge the order before the Income Tax Appellate Tribunal (ITAT)

3. Approach High Courts or the Supreme Court if required

The dispute may take several months or years to reach final resolution, depending on the complexity of the case.

In many situations, courts may also grant interim relief or stay orders, similar to what happened in Meesho’s previous tax case.

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