The office of the Joint Commissioner, Greater Noida, has issued a GST demand order to LG Electronics India Limited. It highlights ongoing tax compliance challenges under the GST regime.
The company disclosed this development under statutory provisions, providing detailed information on the nature and implications of the order.
GST Demand Order Details
On March 10, 2026, the Joint Commissioner of Corporate Circle-2 in Greater Noida issued an official order related to tax matters for the financial year 2019-20. This order was made under specific laws concerning the Goods and Services Tax (GST) at the national and state levels, as well as additional regulations governing integrated GST.
| Component: | Amount (Rs Crore) |
|---|---|
| Principal Tax: | 2.53 |
| Penalty: | 2.53 |
| Interest: | 2.92 |
| Total Demand: | 7.98 |
Details of the Violation
The tax department is claiming that LG Electronics India incorrectly received tax credits for providing bus services to its employees for commuting. Here’s what the department is saying:
- The credit claimed by the company is not mandatory.
- It does not relate to business use.
- Such credit is blocked under section 17(5) of the GST Act
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The issue is concerned with the employee transportation services, particularly pick and drop bus facilities, and whether the ITC can be legitimately claimed on these expenses under GST provisions.
Company Statement and Next Action
The company will submit an appeal to the appellate authorities within the specified timelines. The company held that the ITC claimed is within the ambit of GST requirements and not barred u/s 17(5) of the GST Act.
| Parameter: | Details |
|---|---|
| Order Date: | March 10, 2026 |
| Receipt Date: | March 10, 2026 |
| Period Covered: | FY 2019-20 |
| Appeal Timeline: | Within prescribed limits |
Business and Financial Impact
As per the company, its financials, operations, or other activities were not affected by this order. The same assessment is as per the management’s belief that the ITC via the company is legal and is within the GST provisions. The confidence of the company in its position suggests it expects a favourable outcome in the appellate procedure.
Important: How GST Software Resolves GSTR-3B & 2A/2B ITC Mismatches
The disclosure was as per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders for the material developments impacting the company.
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