Can I claim GST refund on stolen or defective/substandard goods?

Community Forums Legal Advice India Can I claim GST refund on stolen or defective/substandard goods?

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    • #2912 Reply
      Sumitabear306
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        S
        Sumitabear306
        PARTICIPANT
        May 4, 2025 at 6:01 am
        I’m trying to understand if there’s any legal provision under Indian GST or general tax laws where a consumer can claim a refund of the GST component in cases where:

        1. The goods purchased were stolen before use or delivery, and/or

        2. The goods turned out to be defective, substandard, or not as described, and the seller is either uncooperative or unreachable.

        In both cases, the government’s role in protecting consumer rights or maintaining law and order is questionable. So, can I argue that since I didn’t get the value for the tax paid, I should be eligible for a GST refund (or general tax relief) from the government itself?

      • #2914 Reply
        Supersushmita6380
        Participant
          S
          Supersushmita6380
          PARTICIPANT
          May 4, 2025 at 6:04 am
          Customer can ask the seller to issue refund (which includes taxes paid as GST) Seller will nullify the invoice via credit note in GST portal.

          • #2916 Reply
            Sumitabear306
            Participant
              S
              Sumitabear306
              OP
              May 4, 2025 at 6:13 am
              But seller won’t return post the return period usually 5-7 days, in case of electronics never.

              • #2918 Reply
                Supersushmita6380
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                  S
                  Supersushmita6380
                  PARTICIPANT
                  May 4, 2025 at 6:18 am
                  In that case, you can move to consumer court to get compensation. Without the seller issuing you refund, you cannot get the GST back as a regular customer.

                  In case of damage to the item, the shipments will usually be insured, and the shipping company will compensate the seller for it. If the seller is not cooperating, you can always file a consumer court complaint.

            • #2913 Reply
              Simranhawk952
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                S
                Simranhawk952
                PARTICIPANT
                May 4, 2025 at 6:05 am
                How can you claim a GST refund if you’ve not sold the item yet?

                You can file damages in your books of accounts as loss by theft / defects etc.

                • #2915 Reply
                  Sumitabear306
                  Participant
                    S
                    Sumitabear306
                    OP
                    May 4, 2025 at 6:13 am
                    So this can be very well done ?

                    Suppose a person bought an iPhone of say 1.2 lacs, IGST would be 22k around.

                    So i can file damages of 1.2 lacs and potentially recover the entire 1.2 lacs in damages or just the 22k gst ?

                    • #2917 Reply
                      Simranhawk952
                      Participant
                        S
                        Simranhawk952
                        PARTICIPANT
                        May 4, 2025 at 6:18 am
                        You need to explain better. Are you a business? How did the theft occur? Are you registered with gstin?

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