Hi, @vssc
There are some external gateways which do offer support for refunds. You can see all gateways available to merchants residing in India here. If you’d like to utilize another gateway which offers support for refunds, let me know and I will provide you with a list. I agree it would be helpful if this information was noted up front on the payment gateway page, so I’ve let the team know who handles updates on these pages.
Currently, orders cannot be modified to show a refunded status as the gateway does not pass this information back to Shopify. This is simply not a feature that has been integrated into our platform. The feedback we continue to receive will help change this!
Notes within the order timeline can be utilized to reflect the order has been refunded; however, reports will remain inaccurate as the refunds cannot be processed within the admin. You can export your orders and leave the cancelled ones out of the export to view order totals.
We do not offer refunds or discounts for our service. Our developers are aware of many feature requests, brought forth by merchants all over the world. Every day we release new features and product updates, based on the feedback we receive. I trust in the future all payment providers that integrate with Shopify will offer support for refunds within Shopify directly.