The Meesho share price came under sharp pressure in the stock market today, sliding nearly 10% on Monday, March 9 after the e-commerce platform disclosed a major tax demand from the income tax department.
The development quickly caught the attention of market participants. Investors reacted to the regulatory update as the company revealed that it had received a tax demand of ₹1,499.73 crore for the assessment year 2023–24.
The news surfaced through an exchange filing dated March 7, and soon after, the Meesho share price witnessed a sharp drop during trading hours.
While the company has stated that it plans to challenge the order legally, the announcement created immediate volatility around the stock in the stock market today.
Market Performance
The Meesho share price saw significant movement during Monday’s session as investors digested the tax-related update.
Key trading details
- Opening price: ₹147.60 per share
- Intraday high: ₹150.95 per share
- Intraday low: ₹143.20 per share
- Decline: Around 10% during the session
The steep fall pushed the Meesho share price into the spotlight in the stock market today, making it one of the key stocks to watch, especially within the e-commerce and technology space.
Short-term market reactions often follow regulatory announcements, especially when the issue involves tax demands of this scale.
Main News: ₹1,499.73 Crore Tax Demand for FY24
The key trigger behind the fall in Meesho share price was a tax demand of ₹1,499.73 crore, including interest, issued by the income tax department.
According to the company’s filing, the demand was raised through:
- A scrutiny-based tax assessment passed under Section 143(3) of the Income Tax Act.
- Demand notice under Section 156
Both notices relate to the assessment year 2023–24.
In its communication to the exchange, the company said it is currently reviewing the order and intends to challenge the demand through legal channels.
The company also stated that it does not agree with the observations and adjustments made in the assessment order and believes it has adequate legal and factual grounds to contest the matter.
Why Tax Disputes Happen in E-Commerce Platforms?
Tax disputes involving large e-commerce marketplaces often arise due to the way companies account for certain operational costs.
In several past cases involving digital commerce businesses, the differences usually emerge around how companies treat discounts and customer incentives.
Typically, these expenses are classified as business expenditures, which reduces taxable income.
However, tax authorities sometimes argue that:
- Some payments should not be fully deductible, or
- They should be categorized differently for taxation purposes.
Although the company’s filing did not specify the exact adjustment in this case, similar tax disputes in the sector have historically revolved around these accounting classifications.
This context became another factor influencing sentiment around the Meesho share price in the stock market today.
Previous Tax Notice for FY22
This is not the first time the company has faced a tax-related notice.
The company earlier disclosed that it had received a similar tax notice related to the fiscal year 2022, which it had contested in court.
According to disclosures made in its IPO prospectus, the income tax department issued a show-cause notice on January 25, 2025, relating to the assessment year 2022–23.
The notice sought explanations regarding certain proposed adjustments to the company’s tax returns.
The proposed adjustments reportedly involved:
- Advertising and communication expenses
- Mark-to-market gains on forward contracts
- Tax deducted at source (TDS) concerns on certain foreign payments
The company responded to that notice on February 7, 2025, providing additional details and requesting a hearing.
Later, on March 13 of the previous year, tax authorities issued multiple orders including:
- An assessment order
- A demand notice
Together, these orders raised a tax claim of ₹572 crore.
Understanding Financial Year vs Assessment Year
The tax notice relates to the assessment year 2023–24, which can sometimes cause confusion among readers and investors.
In simple terms:
- Financial Year (FY): The period when income is actually earned. In India, it runs April to March.
- Assessment Year (AY): The following year when that income is reviewed and taxed.
So, income generated during a financial year is evaluated by tax authorities in the next assessment year.
This framework explains why tax demands can sometimes appear years after the income was recorded.
Company Details
Meesho is one of India’s fast-growing online commerce platforms that connects suppliers, resellers, and customers through its digital marketplace.
The company entered the public markets recently.
Key listing details
- IPO price band: ₹105 – ₹111 per share
- Stock market debut: 10 December 2025
- Listing price: around ₹162.5
- Listing gain: about 46%
The listing had drawn strong attention at the time, as the company delivered a notable premium over its IPO price.
Since then, the Meesho share price has continued to remain closely tracked in the stock market today, particularly by investors watching India’s expanding digital commerce space.
Meesho Share Price Today: What Investors Saw?
During Monday’s trading session, the Meesho share price remained volatile after the tax demand disclosure.
Stocks often react sharply when regulatory developments emerge, particularly those involving legal or tax matters.
The sudden movement in the Meesho share price reflects how quickly market sentiment can shift when new information reaches investors.
Even though the company stated it plans to contest the order, the announcement itself became the central trigger driving the stock’s movement in the stock market today.
Summary
The Meesho share price witnessed a sharp 10% decline in the stock market today following a disclosure about a major tax demand.
Here are the key developments:
- The company received a ₹1,499.73 crore tax demand for assessment year 2023–24
- The order was issued under Section 143(3) along with a Section 156 demand notice
- The company stated it does not agree with the assessment and plans to challenge the order legally
- A previous tax dispute related to FY22 had also resulted in a ₹572 crore claim
- The Meesho share price moved between ₹143.20 and ₹150.95 during the session
As the situation unfolds, the tax dispute has become a key factor influencing the Meesho share price and its movement in the stock market today.
Source: Livemint
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