E-Commerce Return and Refund Policy Template for India

An Indian e-commerce store needs a return and refund policy that is easy to find, written in plain language, and consistent with the Consumer Protection (E-Commerce) Rules, 2020. In particular, you cannot refuse returns or refunds for defective, wrong or misdescribed goods, and you must have a named grievance officer. This guide explains the rules that matter for small D2C brands and marketplace sellers, then gives you a sample policy you can adapt, plus a checklist for running returns without bleeding money.

This is general information, not legal advice. Rules are amended from time to time, so check the current text on official sources and get a lawyer to review your final policy.

Who the E-Commerce Rules apply to

The Consumer Protection (E-Commerce) Rules, 2020 were notified in July 2020 under the Consumer Protection Act, 2019. They apply to goods and services bought or sold over a digital or electronic network, and they cover three kinds of business:

Type	Example	Main rules
Inventory e-commerce entity	A D2C brand selling its own products on its own Shopify or WooCommerce site	Rule 4 (all entities) and Rule 7 (inventory model)
Marketplace e-commerce entity	A platform where many sellers list products	Rule 4 and Rule 5 (marketplace)
Seller on a marketplace	A Jaipur handicraft business selling on a large marketplace	Rule 6 (sellers), plus the marketplace’s own policy

If you sell on your own website and also on marketplaces, both sets of duties apply to you in different roles. Your own-site policy should be at least as fair as what the law requires, and your marketplace listings must follow the platform’s return categories as well.

What the rules actually require on returns and refunds

Here is a plain-language summary of the parts that affect your return policy. Read the full text of the rules for the exact wording.

1. You cannot refuse returns for defective or misdescribed goods

Rule 6(3) for marketplace sellers, and Rule 7(4) for inventory entities, say you cannot refuse to take back goods, or refuse a refund, if the goods or services are:

• defective, deficient or spurious
• not of the characteristics or features advertised or agreed, or
• delivered late beyond the stated delivery schedule, except where the delay is due to force majeure

This is the core legal floor. A “no returns, no refunds” banner does not override it. You can still have a strict policy for change-of-mind returns, but not for faulty or wrong products.

2. Disclose terms clearly before purchase

Sellers must give buyers information about return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment and the grievance mechanism. Practically, this means a policy page linked in your footer, on product pages and at checkout. Burying it in a PDF or showing it only after payment does not meet the spirit of the rules.

3. Appoint a grievance officer

Every e-commerce entity must set up an adequate grievance redressal mechanism and appoint a grievance officer. The officer’s name, contact details and designation must be displayed on the platform. Under Rule 4(5), the officer must acknowledge a consumer complaint within 48 hours and redress it within one month from receipt.

4. No unfair cancellation charges

Rule 4(8) says an e-commerce entity cannot charge cancellation fees to a consumer who cancels after confirming purchase, unless the entity bears similar charges when it cancels the order unilaterally. If you want a cancellation fee, you need a matching fee on your side, which most small brands will not want.

5. Pay accepted refunds within a reasonable time

Under Rule 4(10), once a refund request is accepted, payment must be made within a reasonable period or as prescribed under applicable law. Stating a specific timeline in your policy, such as 7 working days from receipt of the returned item, sets expectations and protects you.

6. Record consent explicitly

Rule 4(9) requires consent to be recorded through an explicit and affirmative action, not pre-ticked boxes. If you sell add-ons like extended warranty or return protection, the buyer must actively opt in.

Related to this, the Central Consumer Protection Authority’s 2023 guidelines on dark patterns target practices like drip pricing (revealing fees late) and basket sneaking. A restocking fee or return-shipping charge that appears only after purchase can fall foul of these rules, so show any such charge up front.

Decisions to make before you write your policy

A policy is only as good as the decisions behind it. Settle these with your team first:

1. Return window: 7, 10, 15 or 30 days from delivery? Fashion and footwear brands commonly use 7-15 days. Electronics often use a short replacement-only window for defects.
2. Change-of-mind returns: Will you accept returns for size, fit or “did not like it”? If yes, for which categories?
3. Exchange or refund: Will you offer exchange, store credit, refund to source, or let the customer choose?
4. Non-returnable items: Innerwear, cosmetics once opened, perishables, personalised and custom-made items are commonly excluded. Exclusions must still respect the defect and misdescription rule.
5. Who pays return shipping: Free reverse pickup, a flat fee, or customer ships back? Defective and wrong items should always be free for the customer.
6. Proof required: Unboxing video, photos, original tags and packaging? Be reasonable; demanding an unboxing video for every claim frustrates honest customers.
7. Refund timing and method: How many days after receiving the return, and to which payment method? For cash-on-delivery orders, will you refund to bank account or UPI?

Sample return and refund policy (adapt before use)

This template is for an illustrative D2C apparel brand. Change the windows, categories and contacts to suit your business, and have it checked by a lawyer.

Returns, Refunds and Exchanges

Last updated: [date]

1. Damaged, defective or wrong items. If your order arrives damaged, defective, different from what you ordered, or not as described on our website, tell us within [7] days of delivery at [email] or [WhatsApp number] with your order number and photos. We will arrange a free pickup and, at your choice, send a replacement or issue a full refund including any shipping charges paid.

2. Late delivery. If your order is delivered after the delivery date we committed to at checkout, you may return it for a full refund, unless the delay was caused by events beyond our control such as natural disasters or government restrictions.

3. Change of mind, size or fit. You may return unused items with original tags and packaging within [10] days of delivery. Request a return from [My Orders / link]. [Reverse pickup is free / a reverse shipping fee of Rs [X] is deducted from your refund. This fee is shown before you place your order.]

4. Items we cannot accept back for change of mind. [Innerwear, socks, face masks, items marked “final sale”, and custom or personalised products.] These items can still be returned under section 1 if they are damaged, defective or not as described.

5. Exchanges. Size exchanges are free once per order, subject to stock. If the size you need is unavailable, we will refund you.

6. Refunds. Once we receive and check the returned item, we will process your refund within [5] working days. Prepaid orders are refunded to the original payment method. Cash-on-delivery orders are refunded to the bank account or UPI ID you provide. Your bank may take a few additional days to credit it.

7. Cancellations. You can cancel free of charge any time before the order is shipped from [My Orders] or by contacting us. Once shipped, you can refuse delivery or follow the return process above.

8. Grievance Officer. Name: [Full name] | Designation: [Designation] | Email: [email] | Phone: [number] | Address: [registered address]. We acknowledge complaints within 48 hours and aim to resolve them within one month.

9. Seller details. [Legal entity name], [registered address], GSTIN [number].

Notice what this template avoids: no blanket “all sales final”, no hidden restocking fee, no demand for unboxing videos for every claim, and no cancellation fee after you have accepted the order.

Running returns without losing money

A fair policy does not have to be an expensive one. These operational habits keep return costs in check:

• Fix the cause, not just the return. Track return reasons by product. If one kurta style has 30% “size too small” returns, update the size chart or product photos.
• Accurate listings. Real photos, honest colour descriptions, fabric and measurements reduce “not as described” claims, which are the ones you must always accept.
• Prepaid nudges. Cash-on-delivery orders tend to have higher refusal rates. A small prepaid discount can shift the mix.
• Quality check before dispatch. A 30-second check and a packing photo for high-value orders cuts disputes.
• Exchanges over refunds. Make exchange the easy default for size issues, while still offering refunds where required.
• GST credit notes. When goods come back, issue a credit note so your GST liability is adjusted. Credit notes for a financial year generally have to be issued by 30 November of the following year or the date of filing the annual return, whichever is earlier. Check the timeline with your accountant.

Where customers can complain, and why it matters to you

Customers who are not satisfied with your response can approach the National Consumer Helpline (toll-free 1915), which forwards many complaints to companies for resolution. They can also file a case before a consumer commission online through e-Jagriti, the government’s consumer case filing portal.

For a small brand, a helpline complaint is a warning sign, not a disaster. Respond quickly, fix the issue and keep records. A documented process, a named grievance officer and a clear policy are your best evidence that you acted fairly.

Return policy compliance checklist

• Policy page linked in footer, product pages and checkout
• Defective, wrong, misdescribed and late-delivered items always returnable and refundable
• Return window, condition rules and exclusions clearly stated
• Any return shipping fee shown before purchase
• Refund timeline and method stated, including for COD orders
• No cancellation fee unless you bear an equivalent one
• Grievance officer name, designation and contact details displayed
• Legal entity name, address and GSTIN shown on the site
• Process to acknowledge complaints within 48 hours and resolve within one month
• Credit notes issued for returns and reconciled in GST filings
• Policy reviewed by a lawyer and dated, with changes logged

Frequently Asked Questions

Is it legal to have a “no return” policy in India?

You can refuse change-of-mind returns for some products, but you cannot refuse returns or refunds if the product is defective, deficient, spurious, not as described or delivered late (except force majeure). A blanket “no returns” policy that ignores this conflicts with the E-Commerce Rules.

How many days should I give for returns?

The rules do not fix a single return window for change-of-mind returns. Many Indian fashion brands use 7 to 15 days. Choose a window you can manage and state it clearly.

Do I need a grievance officer for a small Shopify store?

Yes. The rules apply to e-commerce entities regardless of size. Name a person, list their contact details and designation on your website, and make sure they respond within the required timelines.

How fast must I refund a customer?

The rules require accepted refunds to be paid within a reasonable period or as prescribed by applicable law. State a specific timeline, such as 5 to 7 working days after you receive the return.

Can I deduct shipping charges from a refund?

For defective, wrong or misdescribed items, refund in full including shipping. For change-of-mind returns, you can deduct a reverse shipping fee if it was clearly disclosed before purchase.

Do these rules apply if I only sell on Instagram or WhatsApp?

The rules cover goods and services bought or sold over a digital or electronic network, so social commerce sellers should follow the same basic principles. Publish your policy on a simple web page or in your profile link and share it before payment.

Publish it, then review it every quarter

Use the template, fill in your own windows and contacts, and put the policy where customers will actually see it. Then review your return data every quarter. The best return policy is fair to buyers, honest about limits, and backed by a business that keeps lowering the reasons people need to return in the first place.