Indian e-commerce major Meesho has received an income tax demand notice of nearly ₹1,500 crore, including interest, from the Income Tax Department of India for the assessment year (AY) 2023–24, according to regulatory filings and media reports.

Key Highlights

• E-commerce platform Meesho receives ₹1,500 crore income tax demand notice for alleged under-reporting of income.
• Company disputes tax assessment order and plans legal challenge, citing strong grounds to contest demand.

The demand stems from an assessment order issued under Section 143(3) of the Income-tax Act, 1961, along with a notice under Section 156. Tax authorities reportedly made adjustments and additions to the income reported by the company while scrutinising its returns.

However, the Bengaluru-based social commerce platform has disputed the observations made in the assessment order and said it is reviewing the matter before initiating legal action.

“The company is currently evaluating the assessment order and does not concur with the observations and adjustments made in the assessment,” Meesho said in an exchange filing. “It believes it has adequate legal and factual grounds to contest the same.”

Stock Impact and Investor Reaction

Following the disclosure, Meesho’s shares fell nearly 10% and hit the lower circuit, reflecting investor concerns about the tax dispute and its potential financial implications.

The development comes amid rising scrutiny of India’s digital economy companies, as regulators intensify checks on income reporting, tax deductions and cross-border transactions in the rapidly growing e-commerce sector.

Also Read: Meesho Reports Rs 3,517 Cr Q3 FY26 Revenue, Losses Jump 13-fold

Previous Tax Dispute

This is not the first tax dispute involving Meesho. The company earlier received a similar demand for AY 2022–23, which it challenged in court. The Karnataka High Court granted an interim stay on that earlier demand in April 2025, and the matter is still pending adjudication.

The tax notice also comes at a time when the company’s financial performance has been under scrutiny. Meesho reported that its net loss widened to around ₹490 crore in the December 2025 quarter, compared with about ₹37 crore in the same period a year earlier, largely due to rising operational expenses and aggressive growth investments.

Despite this, revenue growth remains strong. Meesho reported over 30% year-on-year revenue growth in the same quarter, highlighting continued expansion in India’s value-focused online commerce segment.