New Delhi – India’s Directorate of Revenue Intelligence has opened a probe into two South Korean giants, LG Electronics and Samsung, over accusations that they paid a reduced 5% duty on imported OLED display components. Sources say the 5% rate is traditionally reserved for older LCD and LED parts, while OLED parts are supposed to attract a 15% duty.

Industry response and market context

Both companies argue that OLED technology is simply an advanced form of LED and should qualify for the same lower duty. Samsung said it is “reviewing the matter and cooperating fully with the relevant authorities, adding it is firmly committed to complying with all laws.” LG has submitted written responses and a voluntary deposit to cover any additional duty that may be assessed.

OLED TVs remain a niche market globally, with only about 6.5 million units sold last year, according to research firm Omdia. In India, OLEDs account for roughly 4% of a TV market valued at $4.7 billion, per Counterpoint Research. LG reported a 26% share of the Indian TV market and an OLED share of nearly 59% in value terms.

Potential penalties and broader implications

If the investigation confirms under‑payment, authorities could issue tax demand notices and impose penalties up to 100% of the evaded duty. Companies can challenge such demands in court.

The inquiry arrives as Indian industry groups lobby the IT ministry to extend the 5% concessional duty to OLED parts, arguing that the current rule creates an “anomalous situation” that raises input costs and hampers competitiveness. Letters from the Consumer Electronics and Appliances Manufacturers Association and MAIT claim the lack of parity contradicts the “Make in India” initiative.

Government data shows imports of display components, including TV parts, rose 15% year‑over‑year to $5.6 billion by March 2026, underscoring India’s reliance on foreign supplies for advanced display technology.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.