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Gst on security deposit

Rudrayani Shedjale (Assistant Accountant) (751 Points)

28 June 2019

We have paid security deposit to one of our client. but the client has given invoice by charging gst on security deposit amount.

whether gst applicable on deposit?

if yes can we avail the input credit?

please advise.

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3 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 28 June 2019

No ..... As per Section 7 CGST security not cover under supply & R/w proviso in sub section 31 of Section 2 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.

Hence No GST applicable on Security