Returns & Refund Cost-Sharing Terms

This document explains how returns, refunds, and associated costs are handled between Ornamart and its sellers. Please read this carefully — understanding these terms will help you manage your business on the platform effectively.

1. Why Ornamart Handles Customer Refunds

As an e-commerce platform, Ornamart is the entity the customer transacts with. When a customer pays, they pay Ornamart (via Razorpay). When a refund is due, the customer expects Ornamart to issue it — they do not deal directly with your bank account.

Under RBI-linked guidelines and the Consumer Protection (E-Commerce) Rules, Ornamart must process all eligible refunds to customers within a reasonable timeframe, typically 7–14 business days from approval.

2. When a Refund or Return Is Triggered

A refund or return is initiated only in the following cases (as per our Return, Refund & Exchange Policy):

• Item damaged or broken on delivery
• Wrong item, colour, or quantity delivered
• Item materially not matching the listing description or images
• Item lost in transit

Refunds are not issued for change of mind, size/colour preference, or personal dislike. This protects you from frivolous returns.

2A. Seller-Initiated Order Cancellation

If you cancel an order after the customer has paid, the following applies:

What happens to the customer

• The customer is notified in the app that the seller cancelled the order.
• A full refund is initiated to the customer's original payment method (UPI, card, netbanking, wallet, etc.).
• The refund is processed via Razorpay at normal speed and typically reaches the customer within 5–7 business days from the date of cancellation.
• The customer's order detail screen will show the cancellation status and the refund timeline.

What happens to you (the seller)

• You will be charged the exact payment gateway fee that was incurred when the customer made the payment. This is approximately 2.36% of the order value (2% Razorpay fee + 18% GST on that fee).
• This charge is deducted from your next settlement. It will appear as a cancellation_charge line item in your settlement statement.
• You will not be charged the platform fee (₹10) for cancelled orders — only the payment gateway fee.

Why this charge applies

When a customer pays, Razorpay charges a payment gateway fee. When you cancel the order, Ornamart initiates a refund to the customer — but Razorpay does not refund the gateway fee it already collected. This cost is passed on to you as the party responsible for the cancellation.

Cancellation reasons

When cancelling an order, you must select one of the following reasons:

• Out of stock — Product is no longer available (you will be prompted to update your stock)
• Wrong product listed — Incorrect product was displayed on the listing
• Pricing error — Product was listed at an incorrect price
• Unable to fulfil — You are unable to process this order for another reason
• Other — Any other reason

Minimising cancellations

3. What Costs the Seller Bears

When a valid return or refund is approved, the following costs are deducted from your payout:

3.1 Product Value

The full refund amount paid to the customer is treated as a seller loss. This is the price the customer paid for the product.

3.2 Forward Shipping

The shipping cost charged for delivering the item to the customer is also deducted from your payout.

3.3 Reverse Shipping

If the item needs to be returned to you (reverse pickup), Ornamart arranges and initially funds the reverse shipping through our courier partner. This cost is then deducted from your payout.

You have a choice:

Ornamart will communicate with you to confirm your preference before arranging a reverse pickup.

4. Summary of Cost Responsibility

Cost	Who Bears It
Product value (refund amount)	Seller — deducted from payout
Forward shipping cost	Seller — deducted from payout
Reverse shipping cost (if item returned)	Seller — deducted from payout
Customer-facing refund payment (via Razorpay)	Ornamart pays first, then recovers from seller payout

5. What Ornamart Bears (Not Deducted from Seller)

The following costs are Ornamart's responsibility and are not deducted from your payout:

• Goodwill refunds / credits: If Ornamart refunds or credits a customer due to a logistics delay or app error on our side, and the product itself is fine, that cost is borne entirely by Ornamart.
• Platform-run promo cashbacks / coupons: Any discount or coupon funded by Ornamart (not by you) is 100% Ornamart's cost. If you did not offer the discount, you do not bear it.
• Forward shipping subsidies: If Ornamart runs a "free shipping" campaign and covers part of the forward freight beyond what you already pay, that additional subsidy is Ornamart's cost.

6. How Deductions Appear in Your Payout

All deductions are reflected in your settlement statement. You will see:

• Order value credited
• Ornamart platform fee / commission deducted
• Shipping charges deducted
• Any refund-related deductions (product value, forward shipping, reverse shipping) clearly itemised
• GST TCS deducted (0.5% of order value excluding GST — see Section 10)
• IT TDS deducted (0.1% of payout, if applicable — see Section 10)

You will receive a notification when a refund deduction is applied to your account.

7. Dispute Process

If you believe a refund deduction was applied incorrectly:

• Contact Ornamart support at support@ornamart.in within 7 days of the deduction.
• Provide the order ID and your reason for disputing the deduction.
• Ornamart will review and respond within 5 business days.

9. Tips to Minimise Returns

• Use accurate, high-quality photos that represent the actual product.
• Write clear descriptions including material, dimensions, and any variations.
• Package items securely to prevent transit damage.
• Fulfil orders with the correct item, colour, and quantity as ordered.
• Keep your listings updated — remove out-of-stock items promptly.

10. Tax Deductions — GST TCS & IT TDS

As an e-commerce marketplace, Ornamart is required by law to collect and deduct certain taxes on your behalf. These are not additional charges — they are advance tax payments that you can claim credit for when filing your returns.

10.1 GST Tax Collected at Source (TCS) — Section 52, CGST Act

What it is: Ornamart collects GST TCS on every sale you make through the platform.

Rate: 0.5% of the net taxable value of your sale (order value excluding GST)

• Intra-state sales: 0.25% CGST + 0.25% SGST
• Inter-state sales: 0.5% IGST

Threshold: None — applies to every sale from the first rupee.

How to claim it back: Ornamart files GSTR-8 every month and remits the TCS to the government. This amount is automatically reflected in your GSTR-2A/2B. You can claim it as a credit when filing your own GST returns, which reduces your GST liability.

10.2 Income Tax TDS — Section 194-O, Income Tax Act

What it is: Ornamart deducts Income Tax TDS on the payout amount when your settlement is processed.

Rate: 0.1% of the gross payout amount.

Threshold (for Individuals and HUF only):

• If your business is registered as a Proprietorship, Individual, or HUF, TDS is deducted only after your total payouts from Ornamart in a financial year (April–March) exceed ₹5,00,000.
• Once the ₹5L threshold is crossed, TDS applies only on payouts from that point forward — we do not go back and deduct TDS on earlier payouts.

No threshold for companies and firms:

• If your business is a Private Limited Company, LLP, Partnership Firm, or any other entity, TDS is deducted from your very first payout — no threshold applies.

How to claim it back: The TDS deducted by Ornamart is deposited with the Income Tax Department and reflected in your Form 26AS. You can claim it as a tax credit when filing your Income Tax Return (ITR), which reduces your final tax liability.

10.3 Summary of Tax Deductions

Tax	Rate	Threshold	Basis	How to Claim
GST TCS (Sec 52)	0.5%	None	Net taxable sale value	Credit in GST return (GSTR-2A/2B)
IT TDS (Sec 194-O)	0.1%	₹5L/FY (Individual/HUF only)	Gross payout amount	Credit in ITR (Form 26AS)

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