Proxy advisory firm flags Meesho’s GST model, seeks Sebi scrutiny

According to the Bengaluru-based firm, Valmo appears to classify freight received from customers as a GTA service that charges 5% GST without input tax credit (or 12% with input tax credit under certain conditions) rather than treating it as a standard transport support/logistics service that is generally taxed at 18% GST. InGovern argued that this lower tax impact allowed the e-commerce company to subsidize shipping costs, offer lower freight rates, fund discounts and improve unit economics, making its GST position a key component of its business strategy.