Meesho Share Price Decline Amid Tax Demand
On March 9, 2026, Meesho’s share price experienced a significant decline of approximately 10%, opening at ₹147.60 per share. This downturn was largely attributed to a recent tax demand issued by the Income Tax Department, which has raised concerns among investors and analysts alike.
The Income Tax Department has issued a tax demand of ₹1,499.73 crore for the assessment year 2023–24, citing provisions under Section 143(3) and Section 156 of the Income Tax Act. This substantial demand has led to heightened scrutiny of Meesho’s financial practices and has resulted in a sharp reaction in the stock market.
During the trading session on March 9, the share price fluctuated, reaching an intraday high of ₹150.95 and an intraday low of ₹143.20. The sharp decline in share price reflects investor concerns regarding the potential financial implications of the tax demand on Meesho’s operations and overall business strategy.
Meesho, known for being one of India’s rapidly growing online commerce platforms, has stated its intention to contest the tax demand legally. The company believes that it has adequate legal and factual grounds to challenge the demand, indicating a proactive approach to address the situation. A spokesperson for Meesho mentioned, “Meesho disagrees and plans to contest legally.”
This is not the first time Meesho has faced tax scrutiny; the company previously received a tax notice related to the fiscal year 2022, which resulted in a tax claim of ₹572 crore. The recurrence of tax issues may raise questions about the company’s compliance and financial management practices.
As the situation unfolds, the exact adjustments made by tax authorities in the current tax demand remain unspecified. Additionally, the impact of this tax demand on Meesho’s operations and future growth prospects is still uncertain, leaving investors and stakeholders awaiting further developments.
In light of these challenges, Meesho’s management will need to navigate the complexities of the tax landscape while maintaining investor confidence. The outcome of the legal contest against the tax demand will be crucial in determining the company’s financial trajectory in the coming months. Details remain unconfirmed.
