Exclusive: InGovern urges SEBI to examine Meesho's GST treatment; company responds

Corporate governance advisory firm InGovern Research has written to the Securities and Exchange Board of India (SEBI), seeking an examination of Meesho's GST treatment, according to sources familiar with the matter.

According to the letter accessed by ET NOW, InGovern has pointed to the GST treatment adopted through Meesho's subsidiary, Valmo Transportation Pvt Ltd, and has asked whether the company has made adequate disclosures to investors regarding the risks associated with its GST position.

The research firm has claimed that freight recovered from customers appears to be classified as a Goods Transport Agency (GTA) service, a move it alleges has been adopted to claim the GST treatment applicable to GTA services.

InGovern further alleged that Meesho's GST treatment appears to provide a recurring financial advantage, which, according to the firm, supports the company's pricing strategy and subsidised shipping model. It has also questioned the legal sustainability of the company's tax position if it is later found to be unsustainable, stating that the issue could constitute a financial and regulatory risk for investors.

Responding to ET NOW, Meesho said it rejects the claims made in the representation, stating that it reflects no finding by SEBI or any tax authority. The company added that it has not received any communication from SEBI or any other regulator on the matter. Meesho further said it remains confident in its tax positions, which are grounded in the applicable legal framework and that it is fully compliant with its disclosure obligations.

"We have not received any communication from SEBI or any regulator on this matter. We remain confident in our tax positions, which are grounded in the applicable legal framework, and we remain fully compliant with our disclosure obligations," Meesho said.

Shares of Meesho are currently (at the time of filing this report) trading at Rs 189.30 per share, up 1.88 per cent. During the day the counter swung between Rs 190.10 and Rs 183.15 per share. The stock reached its 52-week high level on December 18, 2025 at Rs 254.65 per share; while 52-week low level came on March 16, 2026 at Rs 125.70 per share.

According to BSE website, "EPS based on previous 4 trailing quarters in the scrip is zero." Notably, Meesho is constituent of BSE 200 index and enjoys a market capitalisation of Rs 87,496.58 crore.

(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)