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GST ON RENT SECURITY

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During lockdown many company fails to pay its vendors so i have a query that company have paid 3 month rent security & we asked to landlord to adjust that amount against security so want to understand are we liable to pay GST on amount adjusted against rent or not??

Replies (2)
If u considered as security deposit because deposit including definition consideration of cgst

Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;
Yes, in case security deposit converted or applied as consideration for the service provided it become supply.. thus GST will be charged by your landlord on the adjusted amount and you need to pay it to your landlord and you can take credit..


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