Is it legal for a brand to deduct 18% GST on a 100% warranty refund? Need advice for an Amazon purchase.
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:
- Initial Conflict: Initially, the company offered a refurbished unit as a replacement, which I declined on hygiene grounds.
- 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?