South Korean Tech Giants LG and Samsung Face Indian Probe Over TV Screen Tariffs

Indian authorities are investigating LG Electronics and Samsung over claims that both companies paid lower taxes on imported display parts used in high-end televisions. The dispute centers on glass screens called open cells for OLED TVs, which offer better picture quality than older models.

The Tariff Dispute

Officials state that LG and Samsung wrongly used a low 5 percent import duty meant for older LCD and LED screens. The Directorate of Revenue Intelligence believes the companies should have paid a 15 percent duty for OLED parts instead. Both South Korean firms argue that OLED is simply an advanced type of LED technology and should qualify for the lower tax rate. Tax authorities visited Samsung's India headquarters in Gurugram to question officials, while LG received written questions and submitted responses alongside a voluntary deposit to cover potential extra duties. Neither company has commented on the exact financial sums involved, but penalties can reach up to 100 percent of unpaid duties.

Industry Lobbying and Context

At the same time, industry groups like the Consumer Electronics and Appliances Manufacturers Association and MAIT have pushed the IT ministry to formally include OLED parts under the 5 percent tax bracket. Groups argue that current laws unfairly penalize advanced manufacturing and go against the Make in India goal. Government figures show India's display imports grew 15 percent to reach 5.6 billion dollars by March. Samsung is also fighting a separate 520 million dollar tax demand in India over networking gear imports. Samsung stated it is cooperating with authorities and following all laws, while LG and revenue officials did not respond to media queries.