The probe centres on imports of OLED glass screens, known as open cells, that are used to assemble high‑end television panels in the two companies' Indian manufacturing plants. Indian officials allege that LG and Samsung classified these parts under the concessional 5% duty rate that has traditionally applied only to older LCD and LED display components, while the Directorate of Revenue Intelligence (DRI) maintains that OLED parts are subject to a 15% duty.
OLED televisions remain a niche segment globally, with research firm Omdia estimating 6.5 million units sold last year. In India, the OLED market accounts for roughly 4% of a $4.7 billion TV market, according to Counterpoint Research, but both firms have bet heavily on expanding premium OLED production in the country.
Samsung responded that it is reviewing the matter, cooperating fully with the authorities and remains committed to complying with all applicable laws. LG, which listed its Indian unit on the Mumbai stock exchanges last year with a market capitalisation of about $12 billion, has submitted written answers to the DRI's queries and made a voluntary, undisclosed monetary deposit to cover any additional duty that may be assessed.
DRI officials visited Samsung's Indian headquarters in Gurugram in recent weeks to question senior staff, while LG received a set of written questions on its OLED imports and has already replied. The agencies have not disclosed the exact amount of duty the companies are alleged to have underpaid.
Under Indian tax law, authorities can issue demand notices and impose penalties of up to 100% of the duty evaded. Companies retain the right to challenge such demands in court, a route that Samsung has previously pursued in a separate $520 million tax dispute over alleged misclassification of networking‑gear imports.
Industry bodies, including the Consumer Electronics and Appliances Manufacturers Association and the Manufacturing Association for Information Technology (MAIT), have written to the IT ministry urging that OLED display parts be brought under the 5% concessional duty regime. The letters argue that the current tariff structure creates an "anomalous situation" that raises input costs for OLED manufacturers and undermines competitiveness.
Government data shows that India's imports of display components, including TV parts, rose 15% to $5.6 billion by March 2026, underscoring the country's reliance on foreign supplies. The same industry groups are lobbying for broader exemptions for OLED manufacturing equipment, noting that only older LCD‑technology machines currently enjoy duty relief.
The investigation's outcome could reshape the cost dynamics of premium OLED televisions in India and influence the broader debate over tariff parity for advanced display technologies, a key issue for the government's "Make in India" agenda.