The Income Tax Department has sent a huge tax demand letter to the e-commerce website Meesho for the financial year 2023–24. It is for about ₹1,500 crore. The demand has brought new attention to the company, which is one of India’s online markets that is growing quickly.
The company says that the overall demand is ₹1,499.73 crore. This amount also includes interest that the tax officials have worked out. The claim was made after the department carefully looked over the business’s financial records.
The order was made under the Income Tax Act, and it came after officials looked at Meesho’s income records and other financial information for the assessment year. Early in March 2026, the company got the tax demand letter and the evaluation order.
The change has now become a big business problem in the country’s internet trade sector, which is growing quickly.
The company says it will fight the order
Meesho has made it clear that it doesn’t agree with what the tax authorities found. The business thinks that the changes that were made to the assessment order are wrong.
In its answer, the company said it is carefully looking over the details of the order right now. Also, it said that it has good legal and real reasons to fight the tax demand. The business is going to make an appeal and go to court through the right routes. In order to appeal the choice made in the review, it will go to higher officials.
Meesho thinks that the demand will not hold once the case is properly looked at. The business said it would protect its stance in court in any way possible. It’s not unusual for big businesses and tax officials to disagree in this way, especially when there are different ideas about how to read financial reports and figure out taxes.
No Effects on Business Operations Right Away
Meesho said that the order probably won’t have a big effect on its business right now, even though the tax demand is pretty big. As long as the court process goes on, the company said it would keep doing business as usual.
An earlier tax dispute is still going on
In the past, Meesho has also had to deal with a big tax bill from the Income Tax Department. The business had already gotten a similar request for the previous review year.
The earlier case is about the fiscal year 2022–23, and the Karnataka High Court is hearing it right now. In that case, the company got temporary help from the court in April 2025. The stay order protected Meesho from the demand for a short time while the court continued to look into the case. That case is still going through the court process.
The company also talked about that earlier disagreement in public documents it put out in late 2025. Stakeholders were told by the company that the case was going to court.
Read more: Meesho Receives First Post-Listing Rating, Analysts Predict Strong Upside
You get a tax notice after your losses go up
The tax claim came at a time when Meesho’s quarterly financial results were worse than expected. The company lost a lot more money in the December quarter than it did during the same time last year.
For the quarter, Meesho had a net loss of ₹491 crore. The loss was ₹37.4 crore in the same quarter of the previous year, which is a lot less. At the same time, the business made a lot more money. The company made ₹3,517.6 crore, which is about 32% more than the previous quarter.
The company is having a tough time financially right now because of the new tax requirements and rising costs. Meesho is still sure that it can handle the situation and settle the argument through the courts while also growing its Indian e-commerce business.
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