Q1. May it be said that it is hold for deficiency in services in future?
Q2. GST could be paid on SD on its actual receipt ?
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Money held as security deposit by govt department
Replies (3)
A1 - Depends on the contract/ tender terms and conditions.
A2 - Retention of money is secondary and is only post the sales in done. So GST is already raised on the entire consideration ( including deposit ) so no GST later on at the time of receipt.
A2 - Retention of money is secondary and is only post the sales in done. So GST is already raised on the entire consideration ( including deposit ) so no GST later on at the time of receipt.
No gst payable on SD
Since security deposit is demanded before execution of contract, it would not be possible to conclude in advance that there would be a deficiency of service. So no GST can be paid on advance receipts on this basis.
Further, no gst on refundable deposits.
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