LG Electronics India Faces GST Demand Over Employee Bus Service ITC Claim

LG Electronics India Faces GST Demand Over Employee Bus Service ITC Claim

LG Electronics India Limited, a leading manufacturer and distributor of home appliances and electronics, issued a disclosure to NSE Ltd and BSE Ltd regarding receipt of a tax demand worth Rs 7.98 crore.

Background of the case

The company added that it had received a demand order on March 10, 2026, issued by the Joint Commissioner of Uttar Pradesh. The tax department says the company wrongly claimed GST Input Tax Credit (ITC) on the bus transportation facility provided to employees for pick-up and drop. According to the department, this is not mandatory by law. It is not considered directly used for business purposes. Because of this, the GST law does not allow claiming tax credit on it.

Details of the case

Particulars	Details
Name of the Authority	Joint Commissioner, Corporate Circle-2, Greater Noida, Gautam Budha Nagar, Uttar Pradesh
Nature of Order	Order in Order (Demand Order)
Order Section	Section 74 of the Central Goods and Services Tax Act, 2017 and the Uttar Pradesh Goods and Services Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017
Date of receipt of order	10/03/2026
Financial Period	FY 2019-20
Total Tax Demand	Rs. 7.98 Crore, including interest and Penalty (Principal Tax Rs. 2.53 Crore + Penalty Rs. 2.53 Crore + Interest Rs. 2.92 Crore)

Financial Impact

The company stated that there is no financial impact on the company.

Company’s Further Action

The company said that it will file an appeal before the appellate authority within the prescribed time limits.