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Policy · Commerce & Consumer Brands

Meesho faces Rs 14.29 crore GST demand

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Date
Company
Meesho
What it does
E-commerce marketplace for value shoppers
Kind
Policy
Amount
Rs 14.29 crore
Sector
Commerce & Consumer Brands

What they do

The GST appellate authority upheld a Rs 14.29 crore tax demand on Meesho for TCS non-applicability in 2018-20

What happened

Meesho plans to challenge the order before the GST Appellate Tribunal, calling it unsustainable and without merit

Why it matters

This adds to a separate Rs 1,499.74 crore income-tax demand Meesho received in March 2026

The details

  • The GST department raised a Rs 14.29 crore tax demand against Meesho, which an appellate authority upheld.
  • The order-in-appeal came from the Commissioner (Appeals) of CGST Thane Commissionerate on 24 April 2026 and reached Meesho on 28 April 2026.
  • The dispute concerns whether Meesho should have collected TCS (Tax Collected at Source) under Section 52 of the CGST Act for transactions between resellers and end customers from October 2018 to March 2020.
  • The appellate authority kept the tax demand plus interest and penalties under Section 74 of the CGST Act.
  • It also cancelled a separate penalty that had been imposed under Section 122 of the CGST Act.
  • Meesho says it will challenge the order before the GST Appellate Tribunal within the prescribed timeline.
  • The company maintains the demand is unsustainable and without merit, based on its assessment, professional advice, and legal position.
  • Meesho stated the order will not materially hurt its financial position, operations, or business activities.

The bigger picture

  • This GST demand follows a Rs 1,499.74 crore income-tax demand Meesho received in March 2026 for Assessment Year 2023-24.
  • Meesho reported a net loss of ~Rs 491 crore in Q3 FY26, even as its operating revenue grew to ~Rs 3,518 crore.

What happens next

  • Meesho will challenge the GST order before the GST Appellate Tribunal within the prescribed timeline.
  • The company will continue to contest the demand, asserting it has no merit.

The deal

Type
policy

Founders

  • Vidit Aatrey, Founder
  • Sanjeev Barnwal, Founder

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