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GST ON RENT SECURITY

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ashish thakur

45 Points Posted on 08 July 2020

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)

Quick Summary

This discussion clarifies whether GST is applicable when a rent security deposit is adjusted against outstanding rent payments. Generally, if the security deposit is applied as consideration for services rendered, the landlord is liable to charge GST on that amount. You will need to pay this GST to your landlord, but you can then claim it back as input tax credit.

chethan data

198 Points Posted on 08 July 2020

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;

CA ABHAY GUPTA

Practice

1639 Points Posted on 08 July 2020

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..