OnePlus is going through one of its most uncomfortable phases in recent years. The smartphone brand, long known in India for loyal fans and strong after-sales support, is now facing pressure on two very different fronts. The OnePlus India GST issue, involving a ₹93 crore demand linked to its green line display replacement policy, has surfaced just as the company is also dealing with serious legal trouble involving its CEO overseas.
While both issues are unrelated, together they paint a worrying picture for the company at a time when competition in the smartphone market is already intense.
GST demand linked to OnePlus’ green line display replacements
The OnePlus India GST issue centres around the company’s popular green line display replacement policy. Over the past year, many OnePlus phone users reported a green vertical line appearing on their screens. In response, OnePlus announced a lifetime display replacement programme for affected devices, a move that was widely welcomed by customers but has now drawn scrutiny from Indian tax authorities.
However, Indian GST authorities have now raised a tax demand of around ₹93 crore, arguing that the display replacement programme may qualify as a taxable service under GST rules as per a report by Economic Times. In regulatory filings with the Registrar of Companies, OnePlus Technology India said that GST authorities have conducted inquiries, searches, and inspections related to its “Green Line Worry Free Solution” during the FY24 and FY25 financial years, according to the report.
OnePlus has disputed this claim. The company has reportedly deposited part of the amount under protest while contesting the demand through legal channels. Furthermore, the filing does not specify the grounds on which the tax claim has been raised. For now, the matter remains unresolved.
A OnePlus India spokesperson said to the publication that the company is cooperating with authorities on the issue and is confident of a favourable outcome, adding that it continues to prioritise customer experience.
The issue puts OnePlus in a tricky spot. What was meant to be a customer-friendly solution has turned into a costly legal headache – and one that could force the company to rethink how such repair and replacement policies are structured in the future.
Why this matters for OnePlus in India
For Indian consumers, the biggest concern is whether OnePlus’ service commitments – especially the green line display replacements – will continue smoothly. Any scaling back of support or policy changes could hurt customer trust, something OnePlus has relied on heavily in the Indian market.
From a business perspective, the OnePlus India GST issue is significant. A tax demand of around ₹93 crore is not a small amount, and it comes at a time when smartphone brands are already facing pressure on margins and slowing upgrades. Combined with legal uncertainty overseas, it puts OnePlus under strain both financially and reputationally.
More importantly, the situation shifts the conversation around OnePlus. Instead of new launches and features, the spotlight is now on compliance, governance, and damage control. Even when it comes to new products, the company seems to be scaling back with multiple delays and cancellations for its upcoming launches in India.
Arrest warrant issued for OnePlus CEO in Taiwan
At the same time, OnePlus is dealing with a much more serious issue outside India. Taiwanese prosecutors have issued an arrest warrant for OnePlus CEO Pete Lau in connection with an alleged illegal hiring case.
Authorities in Taiwan claim that OnePlus recruited over 70 Taiwanese engineers through a local entity without following the approvals required under Taiwan’s laws, which tightly regulate cross-border business activity involving mainland Chinese companies.
While OnePlus has not shared detailed public comments on the matter so far, the arrest warrant significantly raises the stakes – especially since it directly involves the company’s top executive.
Author: Abhishek Malhotra
Source: The Mobile Indian
Reviewed By: Editorial Team
