Policy · Commerce & Consumer Brands

Meesho faces ₹1,500 crore tax demand from income tax department

By Startup Enthusiast · 7 March 2026

What they do

Meesho is a social commerce platform that connects small sellers with customers

The Income Tax Department issued a notice demanding ₹1,499.74 Cr for the 2023-24 assessment year

The company disagrees with the additions and plans to challenge the order in court

The Income Tax Department issued an assessment order under Section 143(3) of the Income-tax Act.
A formal demand notice dated March 5, 2026, requires payment of ₹1,499.74 Cr including interest.
This demand covers the Assessment Year 2023-24 for Meesho's financial activities.
Meesho filed this information with stock exchanges on March 6, 2026.
The company states it disagrees with the tax authority's additions and adjustments to its income.
Meesho plans to mount a legal challenge against the assessment order.
The firm claims the demand will have no major adverse effect on its operations or finances.
This follows a previous demand of ₹572.1 Cr for the 2022-23 assessment year.

Meesho previously received an interim stay from the Karnataka High Court for the earlier case.
That prior case remains pending adjudication after the stay was granted in April 2025.

The company reported Q3 FY26 operating revenue of ₹3,517.5 Cr to ₹3,518 Cr.
Revenue showed strong growth of 31%-32% compared to the same period last year.
Net loss widened significantly to ₹490 Cr - ₹491 Cr in Q3 FY26.
This loss is roughly 13 times larger than the ₹37 Cr loss in the prior year.
Shares closed at ₹158.6 - ₹159.10 during Friday trading sessions.
The company holds a market capitalization of approximately ₹71,578 Cr.
This valuation translates to roughly $7.9 billion in USD terms.
Meesho is headquartered in Bengaluru.