# OnePlus Hit with ₹93 Crore GST Demand Over Display Warranty

URL: https://technosports.co.in/oneplus-hit-with-93-crore-gst-demand/  
Published: 2026-01-19  
Updated: 2026-01-19  
Author: Hardik Dhamija

OnePlus Technology India faces a ₹93 crore [GST](https://technosports.co.in/?s=GST)demand from tax authorities over its ‘Green Line Worry Free Solution’ warranty program, compounding challenges as revenue and profits decline sharply in FY24-25.

![OnePlus](https://technosports.co.in/wp-content/uploads/2026/01/OnePlus-Green-Line-1.jpg)

## Tax Authorities Question Warranty Program Structure

GST officials are scrutinizing [OnePlus](https://www.oneplus.in/)‘ lifetime display warranty initiative, which offers free screen replacements for devices affected by the widespread AMOLED green line glitch. The program, launched as customer relief, has triggered tax liability questions spanning fiscal years 2024 and 2025.

### OnePlus’s Financial and Tax Challenges

| **Issue** | **Impact** |
| --- | --- |
| GST Demand | ₹93 crore for FY24-25 warranty program |
| Revenue Decline | 13% drop to ₹12,983 crore in FY24-25 |
| Profit Collapse | Net profit fell from ₹230 crore to ₹16 crore |
| Deposit Under Protest | ₹10 crore paid while contesting demand |

### Company Contests Tax Liability

OnePlus has deposited ₹10 crore under protest while challenging the GST demand. Based on legal consultation, the company believes liability probability remains low and has opted against creating financial provisions for this exposure. The dispute centers on how warranty services should be classified under GST regulations.

![](https://technosports.co.in/wp-content/uploads/2026/01/OnePlus-Green-Line-2-1-1024x538.webp)

### Revenue Plummets Amid Strategic Shifts

The tax probe coincides with difficult financial performance. OnePlus India’s revenue dropped 13% year-on-year to ₹12,983 crore in FY24-25, while net profit plunged 93% from ₹230 crore to merely ₹16 crore. A company spokesperson attributed these declines to strategic investments aimed at long-term growth and business sustainability.

### Auditor Flags Internal Control Weaknesses

Compounding concerns, OnePlus’s auditors issued adverse comments regarding internal financial controls as of March 2025. The auditors identified missing audit trails and noted that control systems were still being established following ERP migration. OnePlus acknowledged these observations and stated remedial measures are underway to strengthen financial reporting infrastructure.

![](https://technosports.co.in/wp-content/uploads/2026/01/OnePlus-Green-Line-3-1-953x1024.jpg)

### Green Line Issue Background

The ‘Green Line Worry Free Solution’ addresses a persistent AMOLED display defect affecting various OnePlus models. The vertical green line glitch, caused by manufacturing inconsistencies, prompted the company to offer lifetime free replacements—a move welcomed by consumers but now attracting regulatory attention.

This multi-front challenge tests OnePlus as it navigates tax disputes, financial pressures, and operational improvements simultaneously. The outcome of the GST case could set precedents for how extended warranty programs are taxed across India’s smartphone industry.

## FAQs

### **How much has OnePlus deposited against the GST demand?**

OnePlus deposited ₹10 crore under protest while contesting the ₹93 crore GST demand.

### **What caused OnePlus India’s profit to drop in FY24-25?**

Net profit fell 93% from ₹230 crore to ₹16 crore due to strategic investments and business restructuring.