Meesho Dismisses InGovern’s GST Allegations, Clarifies No Regulatory Violations Found
Meesho has refuted InGovern’s GST allegations saying the proxy advisory firm’s representation is not a finding of SEBI or tax authorities. The e-commerce company has not received any communication from the authority.
Regarding its handling of the Goods and Services Tax (GST), Meesho has denied the claims made by proxy advisory firm InGovern. The online retailer has stated that it has not heard from the regulator about the allegations and that neither SEBI nor any tax body has found anything to back them up.
According to previous reports, InGovern reportedly requested a review of Meesho's GST treatment by submitting a representation to SEBI. The proxy advice firm asked SEBI to look into the matter since it said the company's tax situation could put investors at risk of transparency, financial, and regulatory issues.
Meesho Confident About its Tax Positions
In response to the claims, Meesho stated that the representation in question should not be taken as a conclusion drawn from regulatory proceedings. According to a representative from the company, Meesho denies the allegations made in this depiction, which does not reflect a ruling from SEBI or any taxing body. Neither SEBI nor any other regulator has contacted the brand on this development. Furthermore, the firm emphasised that it is still confident in its tax positions, which are based on the relevant legal framework.
Additionally, it made notice of the fact that it is still completely meeting its disclosure requirements. The supplementary materials that were added to the depiction were also challenged by Meesho. The business has discovered that one of the InGovern invoice samples seems to have been sent by an Amazon employee. It asked whether the document was relevant because the person's LinkedIn profile was public and showed that she was a finance manager at Amazon. Without providing any additional information, the corporation reaffirmed that it is complying with all relevant legal frameworks regarding its tax treatment.
Meesho Under Regulatory Bodies’ Constant Scanner
To this point, SEBI has refrained from taking any action or asking the company for an explanation. Meesho is currently contesting other tax matters when this development occurs. The business contested an INR 1,499.73 crore income tax demand for the 2023–24 assessment year earlier this year. A GST decision demanding about INR 14.29 crore with interest for alleged non-collection of Tax Collected at Source (TCS) under the CGST Act has also been chosen to be appealed.
Meesho has insisted that there is a solid legal basis for both issues and that they would not significantly affect the company's operations. Media sources indicate that InGovern requested an examination of Meesho's GST treatment on the grounds that the company's tax situation may affect investor disclosures and cause financial and regulatory problems. There has been no public reaction from SEBI or any tax authority on the representation of InGovern, and the disagreement is still in its formative stages.
