ideaForge Faces ₹109 Cr GST Demand, Penalty Over Alleged Tax Underpayment

Drone manufacturer ideaForge Technology has been ordered by tax authorities to pay ₹109.2 crore in GST demand and penalties for alleged underpayment of tax on drone sales. The tax demand and penalty add up to ₹109.2 crore, with an equal amount for penalties. The order, issued by the Additional Commissioner of CGST and Central Excise in Belapur, covers the period from January 2022 to March 2024.

The tax authority alleges that ideaForge incorrectly paid GST at a rate of 5%, resulting in a shortfall of 13 percentage points. ideaForge has submitted its response to the show cause-cum-demand notice and believes it will appeal the order after consulting tax advisers, expecting a favorable outcome. The tax dispute comes after ideaForge reported a net loss of ₹2.3 crore in Q1 FY27, down from a net profit of ₹61 crore in Q4 FY26.

However, the loss was down 90% from ₹23.5 crore in the same quarter of the previous year. Although its operating revenue rose to ₹68.6 crore from ₹12.8 crore, it fell 51% sequentially from ₹141 crore. ideaForge started FY27 with an order book of over ₹300 crore and added to its growth pipeline during the June quarter. The company raised ₹500 crore through a qualified institutional placement (QIP) in July, attracting domestic and international investors.

Additionally, it received a government letter of intent (LoI) for up to ₹151 crore in financial assistance under the RDI Scheme to develop YETI, its middle-mile logistics platform. ideaForge's shares ended the trading session yesterday 0.13% higher at ₹734.30 apiece on the BSE.