Samsung Electronics is contesting a $520 million tax demand from Indian authorities, calling the decision unfair and rushed, while its Indian workforce prepares for a series of protests over alleged anti-labor practices.

In a recent filing to the Customs, Excise and Service Tax Appellate Tribunal in Mumbai, Samsung argued that India's tax department imposed the penalties without granting a fair hearing. The dispute centers on imports of "Remote Radio Head" equipment—key components in 4G telecom systems—that the company allegedly misclassified to avoid 10–20% tariffs between 2018 and 2021. The components, worth $784 million, were primarily sold to Indian telecom giant Reliance Jio.

Samsung claims that Indian tax authorities were fully aware of this business model, noting that Reliance had imported similar equipment using the same classification method for years prior to 2017 without incurring tariffs. The company also revealed that it only learned during the investigation that Reliance had been warned by authorities in 2017 but did not disclose this to Samsung, nor did Indian officials question the Korean company during that time.

In addition to the $520 million claim, India has levied an $81 million fine on seven Samsung employees, bringing the total to $601 million—over half of Samsung India's net profit of $955 million in 2024. The outcome of the appeal and whether the employees will challenge the fines separately remain unclear.

This case makes Samsung the second major foreign company recently to push back against a high-profile Indian tax demand, following Volkswagen's $1.4 billion legal battle over import classifications.

Meanwhile, labor unrest is brewing. The Samsung India Workers' Union (SIWU), affiliated with the Centre of Indian Trade Unions (CITU), has announced a wave of protests beginning with a one-day hunger strike on May 13. The union accuses Samsung of anti-labor practices, including selective salary hikes for employees aligned with a management-backed group, and has demanded reinstatement of 25 suspended union members.

The planned actions include rallies in Kancheepuram, a demonstration outside the Directorate of Industrial Safety and Health in Guindy, and a mass petition to the South Korean Embassy in New Delhi on May 19. The union also plans to file a complaint with India's National Human Rights Commission over alleged labor rights violations at Samsung's plant.

Union leaders have urged Samsung India's management to enter direct negotiations with the CITU-affiliated union and called on state and labor officials to intervene.