Is it legal for a brand to deduct 18% GST on a 100% warranty refund? Need advice for an Amazon purchase

Community Forums Legal Advice India Is it legal for a brand to deduct 18% GST on a 100% warranty refund? Need advice for an Amazon purchase

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      User_defa3462
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        User_defa3462
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        April 24, 2026 at 12:46 pm
        Hi everyone, I need some clarity on consumer rights regarding GST and warranty refunds in India.

        **The Situation:** I bought a pair of premium earbuds via Amazon. They developed a manufacturing defect well within the 1-year warranty period.

        **The Resolution Process:**

        1. **Initial Conflict:** Initially, the company offered a refurbished unit as a replacement, which I declined on hygiene grounds.
        2. **Agreement:** After some back-and-forth and filing a grievance with the **National Consumer Helpline (NCH)**, the brand has been cooperative and has now agreed to a **100% refund** via bank transfer since a new replacement unit is unavailable.

        **The Current Issue :** The brand’s support team is stating that they will refund the **”product price”** but told me I should contact Amazon for the **18% GST** portion.

        **My Question:** In a warranty failure case where a 100% refund is promised, isn’t the seller/brand liable to refund the **Total Invoice Value** (including the GST)?

        * My logic is that as a consumer, I should be “made whole.” If I paid Rs. 5,000 total, I should receive Rs. 5,000 back.
        * Does the brand have the authority to refund the tax they collected, or is it true that only Amazon can handle the GST reversal?

        I want to resolve this amicably with the brand as they are finally cooperating, but I don’t want to lose 18% of my money on a defective product. Has anyone else dealt with this? Any specific GST rules or Consumer Act sections I can mention to them?

        **TL;DR:** Brand agreed to 100% refund for a defective item but wants to deduct 18% GST. Is this standard practice or should I insist on the full invoice amount?

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