LG Electronics India Ltd received favorable news from GST authorities on Thursday (July 2) when the GST Authority dropped a proposed demand of ₹116.72 crore related to an FY2021-22 show-cause notice. According to reports from CNBC TV18, the demand comprised ₹58.36 crore towards principal tax and ₹58.36 crore as penalty, with the company stating the matter has been decided in its favor. The order was issued by the Joint Commissioner, GST – Corporate Circle-2, Greater Noida, Gautam Budh Nagar, Uttar Pradesh, on July 1, 2026, following a show-cause notice issued on May 26, 2026 under Section 74 of the CGST Act, 2017.
LG Electronics India stated that there will be no financial, operational or other material impact on the company pursuant to the GST order. As reported by CNBC TV18, the show-cause notice had alleged excess availment of input tax credit during FY2021-22 based on reconciliation differences between GST returns, but these allegations have now been adjudicated in the company's favor. The company emphasized that the decision will have no significant impact on its operations or financial position.
Despite the GST matter, LG Electronics India reported strong operational performance last month, crossing 1 million air-conditioner sales in the first quarter of calendar year 2026. According to CNBC TV18, Sanjay Chitkara, Director and Co-Chief Sales and Marketing Officer, expects the company to exceed the 2 million-unit mark for the full year. He noted that channel inventory has normalized and retail partners are preparing for the festival season in the second half of the year, with the company potentially outperforming its financial year guidance if current demand trends continue.
The company is actively expanding its presence across product categories, including televisions, refrigerators and washing machines, as reported by CNBC TV18. Chitkara highlighted that the company is benefiting from a strong summer season, improving consumer sentiment and easing external pressures. He noted that air conditioners have become a necessary household item with penetration at just 11%, indicating significant growth potential in the market.
Shares of LG Electronics India Ltd ended at ₹1,563.00, up by ₹2.45, or 0.16% on the BSE, according to CNBC TV18. Atul Khanna, Chief Accounting Officer, reaffirmed the company's guidance of mid-teen revenue growth and early double-digit EBITDA margins for 2026, though current demand trends provide scope for improvement beyond these targets.
