Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

GST on security deposit on rent

Save Share

This query is : Resolved

Quick Summary

Generally, GST is not applicable on security deposits received for rent, as they are not considered 'consideration'. However, if the security deposit is later adjusted towards rent (consideration) due to a specific event, then GST will be payable on that amount. This clarifies the tax treatment of rental security deposits.

Daya

Daya (Querist)
Follow

17 October 2020 whether we have to pay GST on security deposit received amount.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 October 2020 Since “Deposit” does not include in definition of “Consideration” and hence no GST will be levied on it. If on happening of a contingent event if Security deposit is adjusted into consideration then GST will be paid on it.

Daya

Daya (Querist)
Follow

17 October 2020 Thanks sir,
to prompt reply.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!