ideaForge Faces Rs 109 Cr GST Demand, Will Appeal Order

Soumya Verma
By
Soumya Verma
Soumya Verma, Senior Correspondent at StartupFeed
Correspondent
Soumya Verma is Senior Correspondent at StartupFeed, covering startup policy, government schemes and early-stage funding in India. She writes from inside the ecosystem she reports on...
- Correspondent
CGST authorities issued a Rs 109.17 Cr demand and penalty covering ideaForge drone sales from January 2022 to March 2024. Source: company filing.

Published: October 5, 2026

StartupFeed Quick Take

  • The ideaForge GST demand totals Rs 109.17 crore: Rs 54.586 crore in tax and an equal penalty.
  • The order covers drone sales from January 2022 to March 2024. The CGST department says the rate should have been 13 points higher.
  • ideaForge plans to appeal, citing a 2025 government note that set drone GST at 5%.

Drone maker ideaForge Technology faces a GST demand and penalty of Rs 109.17 crore, it told the stock exchanges on October 2. The order came from the CGST office in Belapur, Navi Mumbai.

The ideaForge GST demand splits into two equal halves. The tax claim is Rs 54.586 crore. The penalty matches it at Rs 54.586 crore. Interest is extra and not yet counted.

The exchange filing shows the order came in under Section 74 of the CGST Act. That section covers alleged short payment of tax. The period runs from January 2022 to March 2024.

The dispute is about one rate. ideaForge paid GST on its drones at 5%. The tax department says it should have paid 13 percentage points more. That gap is what built the Rs 54.586 crore tax figure.

ideaForge says it is on firm ground. It had already replied to the show-cause notice before the order. It also points to a 2025 government clarification that drones attract 5% GST.

The company plans to appeal before the right appellate authority. It will do so after talking to its tax advisors. ideaForge expects a favourable outcome at that stage.

The sum is large next to the company’s size. ideaForge reported revenue of Rs 226.85 crore for FY26. The tax claim alone is about 24% of that. The full demand with penalty is close to 48%.

The timing is awkward too. ideaForge’s FY26 annual report had shown no contingent liabilities as of March 31, 2026. This order lands as a fresh overhang. ideaForge shares closed at Rs 734.30 on the BSE on October 1.

What this means for you: If you hold ideaForge shares or track defence-tech stocks, watch for the appeal filing and any stay on the demand. A matching penalty means the full Rs 109.17 crore, not Rs 54.586 crore, is the figure at risk until the matter is settled.

Have a tip? Write to us at editorial@startupfeed.in.

Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.

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Soumya Verma, Senior Correspondent at StartupFeed
Correspondent
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Soumya Verma is Senior Correspondent at StartupFeed, covering startup policy, government schemes and early-stage funding in India. She writes from inside the ecosystem she reports on — working within one of North India's largest startup incubation centres, where she evaluates early-stage ventures on technology readiness and investor preparedness, and drafts funding proposals at crore scale under national innovation schemes. She has guided more than 75 plus founders through pitch, valuation and compliance, and reports on the same programmes she works with every day
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