South Korean electronics giants LG Electronics and Samsung are facing an investigation in India over allegations that they paid lower import duties on components used to make OLED televisions, according to sources familiar with the matter.
The investigation by India’s Directorate of Revenue Intelligence centres on OLED “open cell” display panels imported for television production by the two companies in India.
Indian authorities allege that LG and Samsung wrongly claimed a concessional five per cent tariff on the components, arguing that the rate applies to parts used in older LCD and LED technologies.
Officials investigating the imports believe OLED components should instead attract a 15 per cent duty, five sources familiar with the confidential investigation told Reuters.
The companies are disputing the position, arguing that OLED is an advanced form of LED technology and should qualify for the same concessional tariff, the sources said.
The investigation could result in tax demand notices and penalties if authorities conclude that duties were underpaid. Under Indian law, penalties can be as high as the amount of duty allegedly evaded, depending on the circumstances.
The financial value of the alleged duty shortfall has not been disclosed.
Samsung said it was reviewing the matter and cooperating with Indian authorities.
“Samsung is firmly committed to complying with all applicable laws,” the company said in a statement.
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The investigation comes as both companies expand their premium television businesses in India, one of their key growth markets.
India’s television market was valued at about $4.7 billion last year, according to Counterpoint Research, with OLED televisions accounting for nearly four per cent of the market.
LG has reported strong growth in its Indian television business, as it said in August that its TV segment was recording “very high-quality growth”, with its share of the Indian TV market at about 26 per cent and its OLED share at nearly 59 per cent by value.
Samsung also sells OLED televisions manufactured in India, including a 65-inch model priced at about $2,415.
The latest dispute adds to Samsung’s tax challenges in India and they are also contesting a separate $520 million tax demand linked to the classification of imported networking equipment.
Meanwhile, industry groups are lobbying the Indian government to extend the five per cent concessional duty to OLED display components.
In letters sent to the government in August, the Consumer Electronics and Appliances Manufacturers Association and the Manufacturers Association for Information Technology argued that limiting the concession to LCD and LED components puts OLED manufacturers at a disadvantage.
The groups said higher duties on OLED components increase production costs and could discourage investment in advanced display manufacturing in India.
Government data showed that India’s imports of displays and television parts increased by 15 per cent year-on-year to $5.6 billion in the year to March 2026.
Industry groups are also seeking wider exemptions for machinery used to manufacture OLED displays, arguing that the current policy favours older LCD technology and could hinder the country’s efforts to expand advanced electronics manufacturing.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
