Meesho receives Rs 14.29 crore GST notice for non-collection of TCS

Value commerce platform Meesho has received a demand of Rs 14.29 crore before the Goods and Services Tax Appellate Tribunal (GSTAT). The company is set to contest the demand, calling it “unsustainable and without merit,” according to its filing with the stock exchanges on Wednesday.

According to the filing, the order alleges that Meesho failed to collect the applicable tax collected at source (TCS) on certain seller transactions conducted outside the platform between October 2018 and March 2020.

“The matter is in relation to the company’s reseller model, under which individual resellers share products from the Meesho platform with their own customers via social media,” the filing read.


The Commissioner (Appeals), CGST – Thane Commissionerate, Mumbai has upheld the demand under section 74 of the CGST Act, but set 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… is unsustainable and without merit,” Meesho said in its filing.

This comes a few weeks after the recently-listed listed company received a demand of nearly Rs 1,500 crore from the income tax department in March, allegedly for under-reporting its income for the financial year 2022-23.

The company had then said it was evaluating the order and that the demand notice did not have any material adverse impact on its financials.

Meesho reported a 13-fold jump in net losses for the October–December quarter, at Rs 491 crore, while its operating revenue rose 31% on-year to Rs 3,517 crore.