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.

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.

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.

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’s favour.

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.

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.

The company’s 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.

Executives also said retail partners are preparing for the festival season later this year, with channel inventory now back to normal levels.

The stock closed at Rs 1,567.90 on the NSE, up 0.73% from Wednesday’s close of Rs 1,556.50.

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