India is investigating LG Electronics and Samsung Electronics over allegations that the companies paid lower-than-required tariffs on imported display components used in OLED televisions, according to five sources familiar with the matter.
The investigation concerns OLED glass screens known as open cells, which are imported for television panel production in India. The Directorate of Revenue Intelligence believes the companies incorrectly claimed a concessional 5% tariff intended for parts used in older LCD and LED technologies.
Authorities instead believe the OLED components should have attracted a 15% duty, according to two sources familiar with the investigation. The companies are disputing that position, arguing that OLED is an advanced form of LED technology and should qualify for the same tariff treatment.
The exact amount of duties allegedly underpaid has not been disclosed. Indian authorities can issue tax demands and impose penalties of up to 100% of the duty considered to have been evaded if the allegations are upheld. Companies can challenge such demands through the courts.
Samsung said it was reviewing the matter and cooperating fully with authorities while remaining committed to complying with Indian laws. LG Electronics and the Directorate of Revenue Intelligence did not respond to Reuters’ requests for comment.
The investigation has involved direct scrutiny of Samsung’s Indian operations. DRI officials visited the company’s headquarters in Gurugram near New Delhi in recent weeks and questioned company officials, according to four sources.
LG was instead asked to provide written responses concerning its OLED imports. The company has submitted its answers and also made an unspecified voluntary deposit to cover any additional duty that authorities may ultimately seek, one source said.
India is an important growth market for both companies. The country’s television market was valued at about $4.7 billion last year, according to Counterpoint Research, although OLED televisions accounted for less than 4% of the market. Globally, about 6.5 million OLED televisions were sold last year, according to Omdia.
LG listed its Indian subsidiary on Mumbai’s stock exchanges last year. The unit now has a market capitalization of about $12 billion. LG said in August that it held about 26% of India’s television market by value and nearly 59% of the OLED segment.
The dispute comes as industry groups lobby the Indian government to extend the 5% concessional tariff to OLED display components. They argue that excluding OLED technology increases manufacturers’ input costs and weakens their competitiveness.
India’s display imports, including television parts, rose 15% to $5.6 billion in the year through March 2026, highlighting the country’s dependence on imported components. Industry groups are also seeking broader tariff exemptions for equipment used to manufacture OLED displays.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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