Ecommerce marketplace Meesho said on April 29 it received a GST tax demand of Rs 14.29 crore and will challenge the order before the Goods and Services Tax Appellate Tribunal (GSTAT), calling the demand “unsustainable and without merit”.
The demand stems from an appellate order passed by the Commissioner (Appeals), CGST-Thane Commissionerate, in relation to the applicability of tax collected at source (TCS) under Section 52 of the CGST Act on certain seller transactions between October 2018 and March 2020.
According to Meesho’s stock exchange filing, tax authorities have alleged that the company failed to collect TCS on supplies made by individual sellers who sourced products from its platform and sold them to customers outside the marketplace through social media and other channels.
The appellate authority upheld the tax demand of approximately Rs 14.29 crore along with applicable interest and penalty, while setting aside a separate penalty imposed under Section 122.
“Based on the company’s detailed assessment, independent professional advice and legal position, the company is firmly of the view that the demand raised under the said order is unsustainable and without merit,” Meesho said.
The company added that it has strong legal and factual grounds to challenge the order and remains “highly confident of a favourable outcome.”
Meesho said the order will have no material adverse impact on its financial position, operations or business.
The GST dispute was earlier disclosed in Meesho’s prospectus filed in December 2025 and pertains to a tax notice received by the company in March.
The development comes weeks after Meesho disclosed a separate Rs 1,500 crore income-tax demand for the assessment year 2023-24, which it plans to contest as well.
