Q: If a person sells a certain item and a discount was given to the customer and thereafter the customer wants to exchange the item or be refunded for it, will it be permissible to subtract the discount given (proportionally)? If the discount is not reversed will it be regarded as interest?
A: If the item was sold to him at a discounted price, then when he returns the item and asks for a refund, he will only be entitled to receiving the amount he paid i.e. the discounted price.
However, in the case where the seller allows him to exchange it for another item, then since this is regarded as a separate sale between the purchaser and the seller, if the seller is pleased to give him an item worth more than the amount he paid (i.e. the discounted price), it will be permissible.
And Allah Ta'ala (الله تعالى) knows best.
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