India probes LG and Samsung over alleged low tariffs on OLED TV components

India’s Directorate of Revenue Intelligence has opened a probe into LG Electronics and Samsung for allegedly claiming a 5% tariff on imported OLED glass screens, a rate traditionally reserved for older LCD and LED components. The agency maintains that OLED parts should be subject to a 15% duty, and officials have visited Samsung’s Indian headquarters in Gurugram and issued written questions to LG, which has replied and provided a voluntary deposit pending further assessment.

Both firms contend that OLED is merely an advanced form of LED and therefore eligible for the lower duty. If the investigation confirms underpayment, authorities may issue demand notices and impose penalties up to 100% of the evaded duty, though the companies can legally challenge such actions. The case arrives amid broader industry lobbying to extend the concessional rate to OLED parts, with trade groups arguing one outlet rule hampers “Make in India” ambitions.

India’s TV market, valued at $4.7 billion last year, sees OLEDs holding a roughly 4% share, while LG claims a 59% value share of OLED sales in the country. Samsung is also contesting a separate $520 million tax demand for misclassified networking equipment.