Meesho Gets INR 1,500 Crore Income Tax Demand from Authorities

According to a recent filing by the company, e-commerce startup Meesho intends to challenge an income tax demand notice totalling around INR 1,500 crore, including interest.

On March 6, Meesho was notified for the evaluation year 2023-24. According to the document, a tax demand totalling INR 1,500 crore, including interest, has been raised by the Assessment Unit of the Income Tax Department. The demand order, according to the filing, is based on specific additions and revisions to the company's stated profits.

Responses From Meesho

While reviewing the assessment order, the company has said that it disagrees with the findings and modifications made therein. In order to safeguard its interests, the company is pursuing the required actions and maintains that it has sufficient legal and factual reasons to oppose the same. In its prospectus filed on December 5, 2025, the e-commerce firm revealed that a comparable demand order had also been issued for the assessment year 2022-23.

The High Court of Karnataka issued a ruling on April 17, 2025, granting an interim stay on the demand notice, and the matter is still pending, as mentioned therein. According to the document, the company's finances, operations, and other activities will not be significantly affected by the Assessment Order and the Demand Notice. In the third quarter ending in December 2025, the company's deficit widened to INR 490.6 crore, mostly as a result of a spike in spending during the festive season.

Meesho’s Growing Expanses and Losses

A year ago, the business lost INR 37.43 crore. Expenses for Meesho rose by about 44% in the quarter, with the majority of that growth occurring in the "other expense" category. This segment consistently accounted for a sizeable chunk of total expenditure during the accounting period.

During the reported quarter, the e-commerce firm incurred expenses of over INR 4,071 crore. Of this, "other expenses" amounted to INR 3,821.3 crore, or around 94% of the total. Operating revenue for Meesho increased by 31% to INR 3,517.5 crore in the quarter, up from INR 2,678.64 crore in the previous quarter in 2024.