LGEINDIABSELG Electronics India LtdHighNegative
Announced Wed, 27 May · 13:00 IST

Intimation about Show Cause Notice issued by Joint Commissioner of GST

Regulatory & Legal View source PDF

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AI summary

LG Electronics India Limited has 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 FY 2021-22 under GST laws. The tax department alleges that the company claimed excess Input Tax Credit by comparing data auto-reflected in the GSTN Portal (Table 8A of GSTR-9 Annual Return) versus what was claimed in GSTR-3B (Monthly Return). The SCN demands Rs. 116.72 crore including penalty (Principal Tax Rs. 58.36 crore + Penalty Rs. 58.36 crore). The company states there is no financial or operational impact as this is a reconciliation issue and the ITC claimed is within GST provisions. The company plans to file its reply within one month with evidence supporting its position.

Likely market impact

This is a tax compliance matter involving a significant demand of Rs. 116.72 crore. While the company denies any wrongdoing and expects no impact, the notice creates regulatory uncertainty. Shareholders should monitor how the company responds and whether any penalty is ultimately imposed.