GST on forfeiture of Security Deposit

Hirakjyoti Hajra (1 Points)

18 July 2025  

A contractor was awarded a contract for the supply of goods and, as per the conditions of the contract, he deposited the security deposit. Later, the contract was cancelled as he failed to supply the goods and the security deposited was forfeited as per conditions of the contract.

Please confirm whether GST is applicable for forfeiture of security deposit in the above case

Thank you.