E-commerce platform Meesho has rejected allegations made in a representation submitted to the Securities and Exchange Board of India over its good-and-services-tax treatment, saying the claims do not reflect any finding by the market regulator or tax authorities.
The response comes after ET Now reported, citing sources, that proxy advisory firm InGovern had written to SEBI seeking an examination of Meesho's GST treatment. According to the report, the representation alleged potential disclosure, financial and regulatory risks arising from the company's tax position.
Responding to NDTV Profit, Meesho said the representation did not amount to any regulatory finding and that the company did not receive any communication from SEBI or any other regulator regarding the matter.
"Meesho rejects the claims in this representation, which reflects no finding by SEBI or any tax authority. We have not received any communication from SEBI or any regulator on this matter," a company spokesperson said. "We remain confident in our tax positions, which are grounded in the applicable legal framework, and we remain fully compliant with our disclosure obligations."
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The company also questioned the credibility of material accompanying the representation. Meesho claimed that the sample invoice included in the representation appears to belong to a rival e-commerce company employee, whose publicly available LinkedIn profile identifies her as a finance manager.
The ET Now report said InGovern had sought a review of Meesho's GST treatment, arguing that the company's tax position could have implications for disclosures made to investors as well as potential financial and regulatory risks. The details of the representation and whether SEBI has initiated any examination or sought clarification from the company remain unclear.
Meesho, however, maintained that there had been no communication from any regulator on the issue. The company reiterated that its tax positions were based on the applicable legal framework and that it continued to comply with all disclosure requirements.
As of now, there has been no public statement from the market regulator SEBI on the matter.
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