ideaForge receives ₹109 crore GST demand and penalty
Drone maker ideaForge Technology has been issued a demand and penalty order totalling ₹109.2 crore from Indian tax authorities over alleged underpayment of Goods and Services Tax (GST). The company plans to appeal the decision.
Drone manufacturer ideaForge Technology has received a Goods and Services Tax (GST) demand and penalty order amounting to ₹109.2 crore from Indian tax authorities. The order, issued by the Additional Commissioner of CGST and Central Excise, Belapur, covers the period from January 2022 to March 2024.
The tax authority alleges that ideaForge incorrectly paid GST at a 5% rate, resulting in a shortfall of 13 percentage points compared to the applicable rate. The company, however, stated that it has submitted its response to the notice and pointed to a government clarification from 2025 that establishes the GST rate for drones at 5%.
ideaForge has announced its intention to appeal the order after consulting with tax advisors, expressing an expectation for a favorable outcome. The company does not anticipate any immediate material impact on its financials or operations while the matter is under dispute. This tax dispute arises as ideaForge reported a net loss of ₹2.3 crore for Q1 FY27, a shift from a net profit of ₹61 crore in Q4 FY26.
The company began FY27 with an order book exceeding ₹300 crore and recently raised ₹500 crore through a Qualified Institutional Placement (QIP). Additionally, it secured a Letter of Intent (LOI) from the government for up to ₹151 crore in financial assistance for its middle-mile logistics platform, YETI. ideaForge joins a growing list of Indian tech companies facing significant tax demands from authorities.