Revenue authorities scrutinise duty payments on premium television displays as tech giants face potential duty shortfalls.
India’s Directorate of Revenue Intelligence (DRI) has launched an investigation into South Korean technology conglomerates Samsung and LG Electronics regarding the alleged underpayment of import duties on display components used in high-end OLED televisions.
At the centre of the inquiry is the classification of imported OLED glass panels, known as ‘open cells’. Indian authorities contend that Samsung and LG improperly declared these components under a concessional 5 per cent tariff regime reserved for older LCD and LED technologies. Revenue officials argue that OLED components should incur a standard 15 per cent import duty. While tax authorities have visited Samsung’s Indian headquarters in Gurugram, LG has submitted written responses alongside an undisclosed voluntary monetary deposit pending formal resolution.
The two electronics giants privately dispute the government’s stance, maintaining that OLED is an advanced iteration of LED technology and should qualify for identical duty concessions. The probe targets a niche but lucrative segment within India’s $4.7 billion television market, where OLED models account for roughly 4 per cent of total sales. LG controls nearly 59 per cent of the domestic OLED market by value, while Samsung continues to expand its premium domestic manufacturing presence with high-end models retailing up to $2415.
The enforcement action comes as industry trade groups push the Ministry of Electronics and Information Technology to broaden lower tariff brackets and machinery tax exemptions to encompass next-generation display production. Industry bodies warn that excluding advanced display parts from duty concessions inflates capital costs and hampers domestic high-tech manufacturing under the government’s ‘Make in India’ initiative, particularly as the nation’s total display imports reached $5.6 billion in the year to March 2026.
