India is investigating LG Electronics and Samsung over allegations that the companies paid lower-than-required import duties on display components used in high-end OLED televisions, according to five sources cited by Reuters.
The investigation centres on imported OLED glass screens, known as open cells. Indian officials allege that LG and Samsung claimed a concessional 5% tariff intended for LCD and LED display parts, while the Directorate of Revenue Intelligence (DRI) believes OLED components should attract a 15% duty. The companies dispute that interpretation, arguing that OLED is an advanced form of LED technology and should receive the same tariff treatment.
Authorities have taken different steps against the two companies. DRI officials reportedly visited Samsung’s India headquarters in Gurugram to question executives, while LG received written questions and has submitted responses. LG has also made an unspecified voluntary payment to cover any additional duty that could ultimately be assessed. Samsung said it was reviewing the matter and cooperating with authorities.
The financial impact remains unclear because the investigation has not yet resulted in a final tax assessment. If authorities determine that duties were underpaid, the companies could face tax demands and penalties of up to 100% of the allegedly unpaid duty, although they would have the right to challenge such demands in court.
India’s Growing OLED Market
The dispute comes as India seeks to expand domestic electronics manufacturing while remaining heavily dependent on imported display components. Industry groups have separately been lobbying the government to extend the 5% concessional tariff to OLED display parts, arguing that the current rules disadvantage manufacturers using newer display technology.
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