Meesho faces ₹14.29 Cr GST demand; plans appeal
Meesho Limited received an Order-in-Appeal from the CGST – Thane Commissionerate, upholding a tax demand of approximately ₹14.29 crore, along with applicable interest and penalty under Section 74 of the CGST Act. The demand pertains to the applicability of Tax Collected at Source (TCS) on transactions between resellers and end customers for the period October 2018 to March 2020. Meesho firmly believes the demand is unsustainable and without merit, asserting strong legal and factual grounds to challenge the order. The company plans to file an appeal before the Goods and Services Tax Appellate Tribunal (GSTAT) and is confident of a favorable outcome. Meesho states the order has no material adverse impact on its financial position, operations, or business.
Key Highlights
- Meesho received an Order-in-Appeal for a tax demand of ₹14.29 crore.
- The demand relates to alleged non-collection of TCS on reseller transactions.
- Meesho believes the tax demand is unsustainable and without merit.
- The company will appeal the order to the Goods and Services Tax Appellate Tribunal.
- No material adverse impact on financials or operations is expected.