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Meesho has been issued a tax demand notice of nearly INR 1,500 crore, including interest, for the assessment year 2023-24, which the company plans to contest. The demand is based on adjustments to its reported income. A similar notice for 2022-23 had received an interim stay from the Karnataka High Court. Meesho reported a significant widening of losses to INR 490.6 crore in the latest quarter due to a sharp rise in expenses, while revenue grew by 31 percent to INR 3,517.5 crore, reflecting operational expansion amid higher costs.
E-commerce company Meesho has received a tax demand notice of approximately INR 1,500 crore, including interest, which it intends to challenge, according to a recent company filing. The notice pertains to the assessment year 2023-24 and was issued earlier this week. Advertisement
The filing stated that the tax demand arose from certain additions and adjustments to the income reported by the company. Meesho is currently reviewing the assessment order and disagrees with the observations and adjustments, asserting that it has sufficient legal and factual grounds to contest the demand and is taking steps to protect its interests.
The company highlighted that a similar demand was issued for the previous assessment year, 2022-23, which had been disclosed in detail in its prospectus filed last December. At that time, the High Court of Karnataka had granted an interim stay on the earlier notice, and the matter is still pending.
The filing noted that the latest assessment order and demand notice are not expected to have a significant adverse effect on Meesho's financial position, operations, or activities.
Meesho reported a widening of its loss to INR 490.6 crore for the third quarter ended December 2025, primarily due to a sharp increase in expenses during the festive season. In the same period last year, the company had posted a loss of INR 37.43 crore.
The company's expenses rose by around 44 percent during the quarter, with the bulk of the increase in other expenses, which have consistently represented a large share of overall spending. Total expenses for the quarter were close to INR 4,071 crore, with other expenses accounting for INR 3,821.3 crore, or about 94 percent of the total.
Despite the rise in losses, Meesho's revenue from operations grew by 31 percent during the quarter, reaching INR 3,517.5 crore, up from INR 2,678.64 crore in the December 2024 quarter.
Source PTI
FAQ
1. What tax demand has Meesho received recently?
Meesho has received a tax demand notice of around INR 1,500 crore, including interest, for the assessment year 2023-24. The notice was issued based on adjustments to the company's reported income. Meesho has stated that it intends to contest this demand, arguing that it has legal and factual grounds to challenge the assessment. The company is reviewing the notice carefully and taking steps to protect its financial and operational interests.
2. Has Meesho faced similar tax issues before?
Yes, Meesho faced a similar tax demand for the assessment year 2022-23. At that time, the company disclosed the demand in its prospectus filed in December 2025. The Karnataka High Court had granted an interim stay on the earlier notice, and the case remains pending. The company expects to pursue a similar legal process for the 2023-24 notice.
3. How has Meesho's financial performance been affected recently?
Meesho reported a significant widening of losses in the third quarter ending December 2025. The company posted a loss of INR 490.6 crore, up sharply from INR 37.43 crore in the same quarter of the previous year. The increase in losses was primarily due to a substantial rise in expenses, especially during the festive season.
4. What contributed to the rise in Meesho's expenses?
Total expenses for the quarter were approximately INR 4,071 crore, a 44 percent increase from the previous year. A major portion of this, around INR 3,821.3 crore, was classified under other expenses, which has consistently represented the largest share of Meesho's spending. These expenses include operational costs, marketing, logistics, and other operational overheads.
5. Did Meesho's revenue change despite the losses?
Yes, Meesho's revenue grew by 31 percent during the quarter, reaching INR 3,517.5 crore, compared with INR 2,678.64 crore in the December 2024 quarter. The increase in revenue reflects operational expansion and higher sales, even as the company faced rising costs that widened its losses.
6. What is Meesho's stance on the potential impact of the tax notice?
Meesho has stated that the latest tax demand is not expected to have a material adverse effect on its financial position, operations, or ongoing business activities. The company believes that it has sufficient grounds to contest the notice and is actively taking steps to address the matter through legal and regulatory channels.
7. How is Meesho planning to address the tax dispute?
The company is reviewing the assessment order and intends to challenge the demand in court, similar to how it handled the previous year's tax notice. Meesho aims to protect its interests while ensuring compliance with applicable laws, and it expects to pursue a resolution through the legal process, potentially including appeals and stay orders, to manage the financial impact.
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