Shares of LG Electronics India hit a day high of Rs 1,575.20 on the NSE Thursday after GST authorities dropped a Rs 116.72 crore demand.<\/p>\n
The demand traced back to FY2021-22. Tax officials had issued a show cause notice in May, alleging the company claimed excess input tax credit that year based on mismatches between its GST returns.<\/p>\n
Input tax credit is money a business can claim back on tax already paid on its purchases, so a mismatch like this would normally mean extra tax owed.<\/p>\n
The order arrived on 1 July from the Joint Commissioner of GST in Greater Noida, Uttar Pradesh, and it settled the matter entirely in LG\u2019s favour.<\/p>\n
Of the total amount at stake, Rs 58.36 crore was the tax demand itself and another Rs 58.36 crore was the penalty on top. Both have now been dropped in full.<\/p>\n
LG Electronics India said the resolution carries no financial, operational or other material impact on the company, since the demand was never confirmed to begin with.<\/p>\n
The company\u2019s core business has had a strong start to the year regardless. Last month, LG said it crossed 1 million air conditioner sales in the first quarter of 2026 alone, and management expects to cross 2 million units for the full year.<\/p>\n
Executives also said retail partners are preparing for the festival season later this year, with channel inventory now back to normal levels.<\/p>\n
The stock closed at Rs 1,567.90 on the NSE, up 0.73% from Wednesday\u2019s close of Rs 1,556.50.<\/p>\n