Meesho has been issued a tax notice in the amount of Rs 14.29 crore (including interest) by the Income Tax Department for the Assessment Year 2023-24 following a comprehensive scrutiny of the financial documents filed by the company. The reason behind the issuance of the tax notice is due to certain additions done by the tax authorities to the income reported by the company.

The order dated March 5, 2026, was issued along with a demand notice as per section 156 of the Income-tax Act, 1961, which was received by Meesho on March 6. The scrutiny assessment under the Income-tax Act, 1961, permits the tax authorities to scrutinize the books of accounts and other income documents of a company.

Nonetheless, Meesho has made it clear that it disagrees with the conclusions drawn by the tax authorities and intends to contest the order via legal means. The firm is at present undertaking a detailed examination of the assessment and has stressed that the demand will not materially affect its financials or operational activities.

This is not the first time that such an event has occurred. According to Meesho, there was a previous tax demand made for AY 2022–23 which had been disclosed in its prospectus dated December 2025. This previous order received an interim stay on April 17, 2025, from the Karnataka High Court and is presently undergoing litigation.

The recent revelation was issued pursuant to Regulation 30 of the SEBI (LODR) Regulations, which requires listed entities to disclose any important developments with the stock exchange. On account of the development, the shares of Meesho were seen hovering at ₹143.34, registering a decline of almost 10%.

Meesho remains focused on its primary business model of empowering small sellers, resellers, and cost-conscious buyers, especially in Tier-2, Tier-3 cities, and rural India. The company’s digital platform has been instrumental in transforming traditional informal transactions into online transactions, allowing lakhs of entrepreneurs to engage in e-commerce activities.

Even though there is added complexity due to the tax issue, the response from Meesho shows that the company is confident that it has a strong legal stance. It will be interesting to see how this turns out, both in terms of the monetary and regulatory aspects of the case.