LG Electronics India Limited has received a Goods and Services Tax (GST) demand order of ₹7.98 crore from the Joint Commissioner, Corporate Circle-2, Greater Noida, Uttar Pradesh. The company informed stock exchanges about the development through a regulatory disclosure dated March 11, 2026.
The order was issued on 10 March 2026 in Form DRC-07. It relates to the financial year 2019-20 and has been passed under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017 along with provisions of the Uttar Pradesh GST Act and the Integrated GST Act.
The total amount of ₹7.98 crore includes tax, penalty, and interest. According to the details shared in the filing, the demand is made up of the following components:
These 3 elements together form the total liability raised in the order issued by the tax authorities.
The demand relates to input tax credit (ITC) claimed by the company on employee transportation services. The tax department has alleged that LG Electronics India claimed ITC on expenses incurred for providing bus facilities for employee pick-up and drop.
According to the department, such transportation services are not obligatory and are not directly used for business purposes. On that basis, the credit was treated as blocked under Section 17(5) of the GST Act.
LG Electronics India stated that it intends to file an appeal against the order before the appropriate appellate authority within the prescribed time.
The company maintains that the input tax credit claimed by it falls within the provisions allowed under GST law and is not restricted under the relevant section cited in the order.
In the disclosure, the company indicated that the order does not have any impact on its financial position, operations or other activities at present.
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As of March 12, 2026, 9:59 am, LG Electronics India share price was trading at ₹1,557.00, a 2.36% decrease from the previous closing price.
The matter will now proceed through the appellate process. The final outcome will depend on the decision taken by the appellate authorities reviewing the case and the interpretation of the GST provisions involved.
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Published on: Mar 12, 2026, 11:34 AM IST
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