Meesho has received a GST demand of Rs 14.29 crore and plans to challenge the order before the Goods and Services Tax Appellate Tribunal, marking another regulatory development for the ecommerce platform amid ongoing tax scrutiny.
The demand arises from an appellate order issued by the Commissioner Appeals under the CGST Thane Commissionerate, related to the applicability of Tax Collected at Source under Section 52 of the CGST Act. The case pertains to transactions carried out between October 2018 and March 2020, particularly involving Meesho’s reseller model.
According to the order, tax authorities have alleged that the company did not collect TCS on certain transactions where individual resellers sourced products from the platform but sold them to customers outside the marketplace, often through social media channels. The appellate authority upheld the tax demand along with applicable interest and penalties, while setting aside a separate penalty under another section of the law.
Meesho has stated that it disagrees with the findings and considers the demand to be “unsustainable and without merit,” based on its internal assessment and legal advice. The company has indicated that it has strong grounds to contest the order and expects a favourable outcome through the appellate process.
The development comes shortly after the company disclosed a separate income tax demand of around ₹1,500 crore for the assessment year 2023 to 2024, which it is also in the process of contesting. The back to back tax notices highlight increased regulatory attention on digital commerce platforms and their operational models, particularly around compliance in marketplace and reseller driven transactions.
The case highlights ongoing regulatory focus on the taxation framework for ecommerce platforms operating through hybrid models involving third party sellers and social commerce channels. It brings attention to how Tax Collected at Source provisions are applied across different transaction formats within such models.






