India, Oct. 2 -- Drone maker ideaForge Technology has received a GST demand and penalty order totalling Rs.109.2 Cr over alleged tax underpayment on drone sales.

The order comprises a tax demand of Rs.54.6 Cr and an equal penalty. In an exchange filing, ideaForge said it received the order from the Additional Commissioner of CGST and Central Excise, Belapur, yesterday. It covers the period between January 2022 and March 2024.

The tax authority alleged that ideaForge incorrectly paid GST at 5%, resulting in a shortfall of 13 percentage points.

ideaForge said it had submitted its response to the show cause-cum-demand notice. It also pointed out that the government clarified in 2025 that the GST rate applicable to drones is 5%.

The compa...