LG Electronics India Comes Under Customs Scrutiny Over ₹153.58 Crore Duty

LG Electronics India Ltd has received a show-cause notice from Customs authorities seeking recovery of Rs 153.58 crore in customs duty, relating to the alleged non-inclusion of royalty payments in the assessable value of certain imported goods.

According to a stock exchange filing by the company, the notice followed an investigation by the Directorate of Revenue Intelligence (DRI) into the valuation of imported goods.

The notice, dated September 22, was issued by the Office of the Commissioner of Customs at Nhava Sheva Port in Navi Mumbai and was received by LG Electronics India on September 24.

The DRI has alleged that royalty payments associated with certain imported goods were not included while determining their assessable value for customs purposes. The show-cause notice seeks recovery of the resulting customs duty.

LG Electronics India, along with South Korean electronics major Samsung, is also facing a separate DRI investigation concerning the classification and concessional customs duty applied to imported OLED glass screens, according to a Reuters report cited by IANS.

The DRI's reported position is that the concessional 5 per cent customs duty applies to older LCD and LED technology used in mass-market products, while OLED components should attract a 15 per cent customs duty.

LG Electronics is reported to have responded to questions from authorities concerning its OLED imports and voluntarily deposited an amount representing the difference in customs duty estimated by officials.

Separately, LG Electronics India reported strong financial performance in the first quarter of financial year 2026-27. Its net profit increased 27.2 per cent year-on-year to Rs 653 crore, compared with Rs 513 crore in the corresponding quarter of 2025-26.

The company’s revenue during the April-June quarter rose 15.5 per cent to Rs 7,233 crore, from Rs 6,262 crore in the same period of the previous financial year.

The latest customs proceedings come alongside continued growth in the company’s India business, supported by strong summer demand and sales of premium products.