LG India Receives Show Cause Notice for ₹116.72 Crore GST Demand for FY22
LG Electronics India Limited received a Show Cause Notice from GST authorities for FY21-22, demanding ₹116.72 Crore (₹58.36 Crore tax, ₹58.36 Crore penalty). The notice alleges excess Input Tax Credit claims. The company expects no financial impact and will file a reply within a month.
While the company claims no financial impact, a demand of over ₹100 Crore, even if disputed, represents a material event that could potentially involve significant legal and administrative efforts. The outcome, if unfavorable, could have a substantial impact, hence medium impact is assigned.
The company has received a notice demanding a significant amount, which could be perceived negatively. However, the company explicitly states that there is no expected impact on financials or operations and plans to contest the notice, indicating a neutral stance.
LG Electronics India Limited has received a Show Cause Notice (SCN) dated May 26, 2026, from the Joint Commissioner of GST, Corporate Circle-2, Greater Noida, UP. The notice pertains to the financial year 2021-22 and alleges that the company claimed excess Input Tax Credit (ITC).
The SCN demands a total of ₹116.72 Crore, comprising ₹58.36 Crore in principal tax and ₹58.36 Crore in penalty. The tax department's allegation is based on a discrepancy found when comparing data auto-reflected in the GSTN Portal (Table 8A of GSTR-9) with the amount claimed by the company in its monthly returns (GSTR-3B).
The company states that there is no expected financial implication, operational impact, or other impact due to this notice, as they believe it is a reconciliation issue and the ITC claimed is within the provisions of the GST law. LG Electronics India Limited plans to file its reply to the Show Cause Notice within one month, along with supporting evidence to demonstrate that no excess ITC was claimed. The date of occurrence of this event was May 26, 2026.
What to do with a filing like this
LG Electronics India Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by LG Electronics India Limited. Read the original for the full detail.