GST on security deposit on rent


This query is : Resolved 

Quick Summary
Generally, GST is not applicable on security deposits received for rent, as they are not considered 'consideration'. However, if the security deposit is later adjusted towards rent (consideration) due to a specific event, then GST will be payable on that amount. This clarifies the tax treatment of rental security deposits.

(Querist)
17 October 2020 whether we have to pay GST on security deposit received amount.

17 October 2020 Since “Deposit” does not include in definition of “Consideration” and hence no GST will be levied on it. If on happening of a contingent event if Security deposit is adjusted into consideration then GST will be paid on it.

Daya (Querist)
17 October 2020 Thanks sir,
to prompt reply.


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