Does an Indian online store need a return policy?
Yes. The Consumer Protection (E-Commerce) Rules 2020 cover every model of online selling, single-brand retailers included. A Shopify store that owns its stock and sells to consumers is an inventory e-commerce entity (rule 3(1)(f)), and rule 7(1)(a) asks it to show, clearly and prominently, accurate information on return, refund and exchange; warranty and guarantee; delivery and the cost of return shipping; modes of payment; and how a customer complains.
The rules ask for an accurate policy. They do not set a window of 7, 15 or 30 days; that is yours to choose.
What a store cannot refuse
Under rule 7(4), a store selling its own stock may not refuse to take goods back, or refuse a refund of what was paid, when the goods are:
- defective, deficient or spurious;
- not of the characteristics or features advertised or agreed;
- delivered later than the stated delivery schedule, unless the delay was force majeure.
The Consumer Protection Act 2019 adds a time limit. Refusing to take back defective goods and refund them within the period stated on the bill, or within 30 days if the bill states none, is an unfair trade practice (section 2(47)(viii)).
A change of mind, or the wrong size ordered, is not in that list. Whether you accept it, for how long, and for what (exchange, store credit or refund) is your choice; the policy must say it plainly.
Other rules that touch the policy
| Rule | What it asks |
|---|---|
| 4(8) | No cancellation charge after the order is confirmed, unless you bear a similar charge when you cancel an order yourself |
| 4(10) | Accepted refunds are paid within a reasonable period, as the Reserve Bank of India or another law prescribes |
| 4(4), 4(5) | A named grievance officer, with contact details and designation on the site; complaints acknowledged within 48 hours and resolved within one month |
| 7(1)(e) | The total price in one figure, with the breakup of every charge, such as delivery, COD (cash on delivery) fee and tax |
| 7(1)(f) | A ticket number for each complaint, so the customer can track it |
What changes on 1 Jan 2027
The Consumer Protection (E-Commerce) (Amendment) Rules 2026, notified on 9 Sept 2026, come into force on 1 Jan 2027. Three changes reach the policy page:
- Best before or use before dates join the list in rule 7(1)(a); for food, as the Food Safety and Standards Act 2006 provides.
- The grievance officer must also give the customer a copy of the complaint as recorded.
- Joining the National Consumer Helpline's convergence process becomes a duty, where it was a best effort.
A return policy template
Replace each part in square brackets, and keep the policy page, the order email and the return portal saying the same thing.
- Window. Ask for a return or exchange within [7] days of delivery.
- What can be returned. Unused items with tags. [Innerwear, customised and final sale items] cannot be returned for a change of mind.
- Faulty or wrong items. Tell us, with a photo, if an item is damaged, defective or not as described. We replace it or refund it in full, whatever the return window.
- Exchanges first. We offer [a size exchange, another product or store credit]; a refund is available for [faulty items, or on request].
- Return shipping. [We book a free pickup / ₹100 is deducted from the refund.]
- Refunds. Prepaid orders go back to the original payment method within [7] days of the item reaching us; COD orders by bank transfer or UPI.
- Cancellations. Free until the order ships.
- Complaints. Grievance officer: [name, designation, email, phone]. Every complaint is acknowledged within 48 hours, given a ticket number and resolved within one month.
Setting it up in Shopify
Both the text and the rules live in Settings > Policies.
- Return and cancellation rules set the window (14, 30 or 90 days, unlimited or custom, counted from delivery), return shipping (free, a flat rate, or the customer buys a label), a restocking fee as a percentage, and final sale products or collections. A restocking fee is not deducted automatically; you take it off when you create the refund.
- Return policy is the text. It follows your rules only while Use automated policy is on.
- Shopify links your policies in the checkout footer. Its templates, it says, are not legal advice.
What a refund means for GST
A refunded return needs a credit note against the original invoice (section 34 of the CGST Act), declared in that month's GSTR-1. The credit note guide has the 30 November deadline.