E-commerce major Meesho has found itself in the crosshairs of the Income Tax Department, receiving a massive tax demand notice of ₹1,500 crore. The notice follows a comprehensive audit of the company’s financial records over the past few years. According to internal sources, the tax authorities have flagged discrepancies in the firm’s reporting of marketing expenses and input tax credits, leading to this substantial demand.

The Income Tax Department alleges that the platform may have misreported earnings or claimed undue tax benefits to lower its overall liability. For a startup that has been aggressively expanding its footprint in the Indian market, this ₹1,500 crore claim represents a significant financial hurdle. In response, Meesho has maintained that it operates in full compliance with national tax laws and is currently reviewing the notice to decide on its legal course of action. Market analysts suggest that such a high-value tax dispute could impact the company’s valuation and investor confidence at a crucial juncture of its growth phase.