E-commerce market Meesho has acquired an revenue tax demand of almost ₹1,500 crore for the evaluation yr 2023–24, the company stated in a inventory alternate submitting on March 7, including that it’ll challenge the order by means of authorized treatments.
In accordance to the alternate disclosure, the demand was raised by means of an evaluation order issued beneath Part 143(3) of the Earnings Tax Act, together with a demand discover beneath Part 156. The whole demand quantities to ₹1,499.73 crore, together with curiosity, as per the submitting.
The company stated it disagrees with the observations made by the tax authorities and believes the changes within the evaluation order usually are not justified.
“Meesho doesn’t concur with the observations and changes made within the evaluation order. The company believes that it has satisfactory authorized and factual grounds to contest the demand and is taking obligatory steps to defend its pursuits,” the submitting said.
The company additionally clarified that the tax demand will not be anticipated to have any materials opposed impression on its monetary place, operations, or enterprise actions at this stage.
Earlier tax dispute nonetheless pending
This isn’t the primary time the company has confronted such a tax declare. Meesho stated an analogous demand for the evaluation yr 2022–23 had been issued earlier and was disclosed in its prospectus.
That matter is at the moment pending earlier than the Karnataka Excessive Court docket, which had granted an interim keep on the demand discover on April 17, 2025, the company stated.
Discover comes after weak quarterly outcomes
The newest tax demand comes shortly after Meesho reported a pointy enhance in losses for the December quarter, at the same time as income and order volumes continued to develop.
For the third quarter, the company’s internet loss widened almost 12 occasions yr-on-yr to ₹491 crore, in contrast with ₹37.4 crore in the identical interval final yr. Income throughout the quarter rose 32% to ₹3,517.6 crore, however bills elevated at a sooner tempo, main to increased losses.
Regardless of the losses, Meesho reported robust person exercise. Orders grew 36% yr-on-yr to 690 million, whereas the variety of annual transacting customers elevated 34% to 251 million.
Based in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates a market centered on worth-pushed commerce and small sellers, with a big share of its customers coming from Tier-II and smaller cities.
The company stated it is going to proceed to pursue authorized choices towards the tax demand whereas sustaining regular enterprise operations.
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