Tax / Regulatory Notice
LG Electronics India Receives GST Show Cause Notice of ₹116.72 Crore for FY22
NSE
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BSE
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LG Electronics India Limited has received a GST Show Cause Notice from the Joint Commissioner of GST, Greater Noida, alleging excess Input Tax Credit (ITC) claims for FY2021-22. The notice involves a total tax demand of ₹116.72 crore, including a penalty component of ₹58.36 crore. The company stated that the matter is related to reconciliation differences and expects no impact on financials or operations.
PRICE-SENSITIVE TRIGGER
Event: Receipt of GST Show Cause Notice
Type: Tax / Regulatory Notice
Impact: Neutral
Immediate Effect: The company has received a formal GST Show Cause Notice alleging excess Input Tax Credit claims under GST provisions for FY2021-22 and will submit its response within one month.
Key Metrics:
- Total Tax Demand: ₹116.72 crore
- Principal Tax Amount: ₹58.36 crore
- Penalty Amount: ₹58.36 crore
- Financial Year Involved: FY2021-22
Highlight:
- GST department alleged excess Input Tax Credit claimed in GSTR-3B compared with GSTN portal reflected data.
What Happened ?
LG Electronics India Limited informed exchanges that it received a Show Cause Notice dated May 26, 2026 from the Joint Commissioner of GST, Corporate Circle-2, Greater Noida, Uttar Pradesh.
The notice pertains to FY2021-22 and was issued under Section 74 of the Central Goods and Services Tax Act, 2017 along with relevant provisions under the Uttar Pradesh GST Act and Integrated GST Act.
According to the communication, the GST department alleged that the company claimed excess Input Tax Credit while comparing figures auto-reflected in the GSTN portal with claims made in monthly GST returns (GSTR-3B).
The company clarified that the issue relates to reconciliation differences and stated that the Input Tax Credit claimed remains within the framework of GST provisions.
Key Details
Regulatory Communication Details:
- Show Cause Notice received on May 26, 2026.
- Issuing authority is the Joint Commissioner of GST, Corporate Circle-2, Greater Noida, Uttar Pradesh.
- Notice issued in Form DRC-01 under GST regulations.
- Matter relates to alleged excess Input Tax Credit claims for FY2021-22.
- Tax department compared GSTN portal reflected data with GSTR-3B filings.
- Total demand includes both principal tax and equivalent penalty amount.
- Company intends to file a formal response along with supporting evidence within one month.
- Event occurrence time disclosed as May 26, 2026 at 02:02 PM IST.
Note:
- The company stated that no operational or financial disruption is expected as the matter is considered a reconciliation issue under GST compliance processes.
Risk Analysis
Summary:
- The notice introduces regulatory and compliance-related scrutiny for LG Electronics India, although the company currently believes the issue does not materially affect operations or financial performance.
Key Risks:
- Potential tax liability exposure of ₹116.72 crore if the matter is not resolved favorably.
- Regulatory proceedings may continue until reconciliation and evidence submission are completed.
- Any adverse order could result in financial outflow and additional compliance obligations.
- Tax disputes may increase monitoring of GST compliance practices going forward.
- Management currently maintains that the ITC claims are valid under GST provisions.
Worst Case Scenario:
- If authorities reject the company’s reconciliation explanation and supporting evidence, LG Electronics India may face tax recovery, penalties, and potential litigation exposure.
Risk Level: Medium
Company Commentary
- The company stated that the matter relates to reconciliation issues under GST filings.
- LG Electronics India said the Input Tax Credit claimed is within the ambit of GST provisions.
- Management expects no impact on financials, operations, or business activities from the notice.
- The company will submit its detailed reply with supporting evidence within one month.
Official Exchange Filing: LG Electronics India Limited