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GST ON DEPOSIT

Amiit Gupta (Senior Executive Finance & Tax ) (75 Points)

15 June 2019

We have taken Deposits from the customer against the services to be provided.

This deposits will be adjusted to the final bill( inclusive of gst) and excess balance of deposit, if any, will be refunded to the customers.

WOULD GST BE APPLICABLE ON ABOVE DEPOSITS?? Pls Explain.

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3 Replies

nayab (Sr.Officer Accounts ) (250 Points)
Replied 15 June 2019

asper my opinion
deposit is nothing but security amount against of service break
GST not applicable

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Amiit Gupta (Senior Executive Finance & Tax ) (75 Points)
Replied 15 June 2019

HI ALL, MY QUERY IS STILL OPEN.

CS M Pota (Company Secreatary) (3186 Points)
Replied 15 June 2019

A deposit whether refundable or not given in respect of supply of goods or services or both shall not be considered as payment made for supply unless the supplier applies the deposit as consideration for the supply made. So till the supplier applies the deposit as consideration no GST will be applicable.When deposit is adjusted against payment for supply then GST will be applicable.

But the provisions of the Companies Act.2013 for acceptance of Deposit is required to be taken care of in the above case.