Meesho share price tumbles 10% after ₹1,500 crore tax demand for FY24

Meesho share price slumped 10% on Monday, March 9 following the e-commerce platform's receipt of an income tax demand totaling nearly ₹1,500 crore for the assessment year 2023–24, as reported in a stock exchange filing on March 7.

The company stated it plans to contest the order through legal channels. As per the disclosure to the exchange, the demand was made through an assessment order issued under Section 143(3) of the Income Tax Act, accompanied by a demand notice under Section 156. The overall demand is ₹1,499.73 crore, including interest, as noted in the filing.

Significant tax disputes for ecommerce marketplaces usually stem from several common problems. Although Meesho's disclosure doesn't detail the specific adjustment, such situations frequently involve companies categorizing customer discounts and incentives as business expenses, which lowers taxable income.

Tax authorities in previous cases have contended that certain of these payments should not be entirely deductible or should be classified differently for taxation.

Meesho stated that it had previously received a comparable tax notice for the fiscal year 2022, which it contested in court. In its IPO prospectus, the ecommerce platform revealed that the income tax department had issued a show-cause notice on January 25, 2025, regarding the assessment year 2022-23, asking for clarifications concerning specific proposed adjustments to its tax returns.

A financial year indicates the timeframe in which income is generated (April–March), while the assessment year refers to the following year when that income is evaluated and taxed.

The suggested changes entailed the potential prohibition of specific advertising and communication costs, the tax implications of mark-to-market profits on forward contracts, and concerns regarding tax deducted at source (TDS) for certain foreign payments. Meesho addressed the notice on February 7, 2025, providing additional details and requesting a hearing.

Nevertheless, on March 13 of the previous year, the tax authority released a series of orders, which included an assessment order and a demand notice that raised a tax claim of ₹572 crore.

“The company is currently evaluating the assessment order and does not concur with the observations and adjustments made… The company believes that it has adequate legal and factual grounds to contest the same and is taking necessary steps to protect its interest,” it said in the latest exchange filing.

Meesho share price today

Meesho share price today opened at ₹147.60 apiece on the BSE, the stock touched an intraday high of ₹150.95 per share, and an intraday low of ₹143.20 apiece.

Meesho made its stock market debut on 10 December 2025 with an IPO price band of ₹105– ₹111 per share. The stock listed at about ₹162.5, delivering roughly 46% listing gains for investors.

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