Vanshika verma | Mar 12, 2026 |
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.
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