OnePlus Faces ₹93 Crore GST Demand Over Screen Warranty Program
Overview
OnePlus Technology India is in the crosshairs of GST authorities, facing a ₹93 crore tax demand related to its 'Green Line Worry Free Solution' lifetime display warranty. This comes as the company's revenue and profit saw a significant decline in fiscal year 2024-25, alongside auditor concerns regarding internal financial controls.
Tax Probe Intensifies
Goods and Services Tax (GST) officials have initiated inquiries into OnePlus Technology India's 'Green Line Worry Free Solution,' a lifetime warranty offering free screen replacements for affected devices. This initiative, designed to address a widespread AmOLED display glitch, has now become a significant tax headache for the Chinese smartphone manufacturer.
Substantial Tax Demand
Authorities have levied a tax demand of ₹93 crore for fiscal years 2024 and 2025 concerning the warranty program. OnePlus has contested this demand, depositing ₹10 crore under protest, and cited legal advice indicating a low probability of liability. The company has not accrued any provision for this potential financial exposure.
Financial Performance Wanes
The tax scrutiny coincides with a challenging financial period for OnePlus India. Revenue plummeted 13% year-on-year to ₹12,983 crore in FY24-25, while net profit collapsed from ₹230 crore to just ₹16 crore. A company spokesperson attributed these shifts to strategic investments for long-term growth and business future-proofing.
Auditor Concerns Emerge
Adding to its troubles, OnePlus's auditors raised adverse comments on the company's internal controls over financial reporting as of March 2025. The auditors noted a lack of audit trails and highlighted that controls were still being established post-ERP migration. The company stated it is implementing remedial measures to address these observations.
