Drone maker ideaForge Technology has received a GST demand and penalty order totaling ₹109.2 crore from the Additional Commissioner of CGST and Central Excise, Belapur, covering January 2022 to March 2024, according to inc42.com. The order includes a tax demand of ₹54.6 crore and an equal penalty over alleged underpayment of GST on drone sales.
The tax authority claimed ideaForge paid GST at 5%, resulting in a shortfall of 13 percentage points. ideaForge responded to the show cause-cum-demand notice and cited a 2025 government clarification that the applicable GST rate for drones is 5%. The company plans to appeal the order after consulting tax advisers and expects a favorable outcome. It does not anticipate immediate material impact on its financials or operations while the matter is unresolved.
This tax dispute follows ideaForge’s reported net loss of ₹2.3 crore in Q1 FY27, down from a net profit of ₹61 crore in Q4 FY26. The loss narrowed over 90% from ₹23.5 crore in the year-ago quarter. Operating revenue rose to ₹68.6 crore from ₹12.8 crore year-on-year but declined 51% sequentially from ₹141 crore. ideaForge began FY27 with an order book exceeding ₹300 crore and expanded its growth pipeline during the June quarter.
In July, ideaForge raised ₹500 crore through a qualified institutional placement (QIP) from domestic and international investors, bolstering its financial position amid the ongoing tax dispute, inc42.com reported.